Monthly Archives: April 2008

Why Are Workers Unhappy, With Only 5.0% Unemployed? Almost 5 Million Have ?Opted Out? of the Labor Force

Payroll employment peaked in December, and according to numbers released today had declined by 260,000 jobs as of April. (Source: BLS.) Since we have not yet seen a single negative number on GDP growth, this job loss is easily the most tangible statistical evidence we have so far that the much-heralded recession indeed may have […] Continue reading

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Support the Free Trade Agreement with Colombia!

Nicholas Kristof’s column in the New York Times today, “Better Roses than Cocaine,” says it all.   There is no good reason for the US Congress to continue to hold up the free trade agreement that the Administration has negotiated with Colombia.   
Free trade with Colombia can’t have anything to do with loss of US jobs:   Colombia’s exports already enter the […] Continue reading

Posted in Emerging markets, International Trade, Latin America | Tagged , , | 12 Comments

LIBOR Becomes A Bit More Accurate, So Financial Crisis Becomes A Bit Worse

[Source: Institute of International Finance, Washington, DC] Continuing on the theme of the unusual spread that banks currently have to pay to borrow from each other since August (due to credit risk and liquidity concerns): a Wall Street Journal article … Continue reading

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Graph Of Interbank Spreads Suggest Financial Crisis Continues Unabated

While some aspects of the subprime mortgage crisis were predictable, the freezing up the most liquid risk-free markets in the world was not. The illiquidity has been especially striking in the interbank market. The following chart was kindly made available … Continue reading

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More Quotes From Bush White House Affirming The Laffer Hypothesis

In my earlier post, I catalogued some quotes from high Bush Administration officials asserting the Laffer claim that a cut in US tax rates stimulates income so much that the Treasury ends up taking in more revenue than before. I … Continue reading

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The Euro’s Challenge To The Dollar Does Not Depend On Tipping

My friend Barry Eichengreen, together with Marc Flandreau, has written a column in today’s Financial Times, that appears under the headline “Why the euro is unlikely to eclipse the dollar.” The body of the article is a claim that network … Continue reading

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“Are you now or have you ever been a Lafferite?” – Republican Officials Quoted On-Record

Following up on my preceding post, I will here document who has said what. High officials in the Reagan Administration apparently did subscribe to the Laffer Hypothesis: • Reagan himself: “…our kind of tax cut will so stimulate the economy … Continue reading

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