I see there is a kerfuffle about not including land in the Eggertson and Mehrotra’s “Models of Secular Stagnation“, which should raise the equilibrium rate to be negative. I want to make two comments here as a sticky:
Over at Worthwhile Canadian Initiative, Nick Rowe wonders how much of a deficit would need to be money-financed as opposed to bond-financed. I say it doesn’t matter how you finance the deficit, what matters is the time path of interest rates (which is independent of how the deficit is financed).
I was guided by SRW’s tweet to Charlie Stross’ “A Different Cluetrain“. It’s worth a read, and many have been feeling the same things, although expressions of these anxieties are different among the left and right. Here is my response.
This is a blog describing something very trivial — lack of proper escaping of the single quote (U+0027) in many commonly used string escaping libraries — with very serious side effects (potential for cross site scripting).
- Kudos to JW Mason for describing the regime change in corporate behavior. But I wonder how much of the borrowing is just tax arbitrage (e.g. borrowing to pay a dividend when the firm really earned the extra cash but is hiding it overseas).
- No other way to describe Lenovo’s behavior than this.
- Discussion of Keynesian labor demand