Paul Krugman: ...if the government spends money, that money is spent, helping support demand, whereas tax cuts may be largely saved... There is some logic to this. Just because people have...

Nick Rowe of Worthwhile Canadian Initiative is running a Canadian Economic Forecasts 2009 Contest. The rules: Rules: Unconditional point-forecasts only, for these 5 macroeconomic variables (you can do others as well...

From our discussions this week I sketched out some thoughts on inflation. I would like to get your take on the topic, so if you would be kind enough...

Absolutely the way to keep your New Years Resolutions. As many of you know I have used this method to great success. Economics is not all about bailouts...

More on Monday's discussion. Consider the consumption portion of the utility function in the Krugman paper: U = ... s(t) * ln( C(t) ) ... Where: C is private consumption... I’ve introduced a shift...

A follow-up to yesterday's Why Do We Use Inflation Adjusted Prices? When we adjust for inflation, our unit of measure tends to be something like "1982 dollars". But the entire...

Paul Krugman on the need to model the current situation: One thing that’s been bothering me about the discussion over fiscal stimulus is the virtual absence of fully worked-out models, with...

I have a great deal of respect for Paul Krugman, but I find this type of argument rather irritating: Here’s how I see it: the opponents of a strong stimulus plan...

We often see statements like this made by economists: Gas prices reached a new 2008 low of $1.61 per gallon, which is the lowest inflation-adjusted price since... (Emphasis mine) But what do economists...

From Businessweek. My favorite: 7. "I think you'll see [oil prices at] $150 a barrel by the end of the year" — T. Boone Pickens, June 20, 2008 Oil was then...