Monthly Archives: March 2008

Does McCain Subscribe To The Laffer Hypothesis?

So Arthur Laffer — still arguing the improbable “supply side” proposition that cutting income tax rates generally raises total tax revenue — is apparently now a special adviser to John McCain. And McCain has taken on a big consignment of … Continue reading

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The NYT Should Have Paid More Attention To The Nordhaus Estimates Before The Iraq War

At the 5th anniversary of the war in Iraq, estimates of its long-run cost range from $1.2-$1.7 trillion by my former colleague Peter Orszag, now Director of the Congressional Budget Office, to $2 – 3 trillion by my current colleague … Continue reading

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Falling Interest Rates Explain Rising Commodity Prices

If strong economic growth is not the explanation for the large increases since 2001 in prices of virtually all mineral and agricultural commodities, then what is? One wouldn’t want to try to reduce commodity markets to a single factor, nor … Continue reading

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World Growth Can No Longer Explain Soaring Commodity Prices

It is hard to remember now, but mineral and agricultural commodities were considered passé less than ten years ago. Anyone who talked about sectors where the product was as clunky and mundane as copper, corn, and crude petroleum, was considered … Continue reading

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Q: So What Should I Invest In? A: Munis

“What should I invest in?” We economists get asked this question all the time. Many members of the profession believe that Efficient Markets theory forbids us from giving an answer – beyond recommending “a well-diversified portfolio.” Perhaps a few of … Continue reading

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