Things to Read on the Afternoon of August 27, 2014

Must- and Shall-Reads: Matthew Yglesias: 38 maps that explain the global economy Amitabh Chandra et al.: Who Ordered That?: The Economics of Treatment Choices in Medical Care Erwin Chemerinsky: How the Supreme Court Protects Bad Cops Chang-Tai Hsieh and Enrico Moretti: Growth in Cities and Countries Martin Wolf: Opportunist shareholders must embrace commitment   Greg Sargent: GOP’s Obamacare repeal follies continue: "One of the most amusing subplots of the 2014 elections has been the endless and frequently comic struggles of GOP Senate candidates to articulate... More >

Afternoon Must-Read: Daniel Kuehn: Yes, Acemoglu and Robinson’s Piketty Review Is Strange

Daniel Kuehn: Yes, Acemoglu and Robinson's review of Piketty is very strange: "I just happened to get to one of the parts in Piketty that Acemoglu and Robinson quote... ...to show that Piketty doesn't think institutions matter (from page 365): The fundamental inequality r > g can explain the very high level of capital inequality observed in the nineteenth century, and thus in a sense the failure of the French revolution.... The formal nature of the regime was of little moment compared with the inequality... More >

Afternoon Must Read: Matthew Klein: Jae Song and Till von Wachter on Long-Term Unemployment and Hysteresis

**Matthew Klein:** This time is different, long-term unemployment edition: "Jae Song and Till von Wachter... >...the impact of the most recent recession on long-term unemployment was not actually that unusual given the number of jobs lost at the outset. The paper also presents some encouraging evidence that many of those who appear to have given up hope of finding a job could rejoin the labour force if the economy keeps expanding, as well as sobering demonstrations of the permanent costs of being laid off.... Long-term... More >

Lunchtime Must-Read: Jonathan Chait: Dreamers Have Destroyed GOP Immigration Strategy

Jonathan Chait: Dreamers Have Destroyed GOP Immigration Strategy: "After the 2012 election, Marco Rubio tried to craft himself... ...as the leader of a pro-immigration-reform Republican Party. That effort has capsized, pulling Rubio’s standing with conservatives down along with it. Now Rubio is refashioning himself as the leader of a restrictionist Republican Party.... The newest iteration of Rubio is the opposite of the figure he and party leaders envisioned last year. The transformation ought to terrify them.... Of course, the 2016 campaign has hardly begun.... The... More >

Yet More Things You Absolutely Must Read…

Yet More Things You Absolutely Must Read... Claire Cain Miller pulls out interesting quotes from the Pew Research Center's Internet & American Life Project: AI, Robotics, and the Future of Jobs The full version of John Maynard Keynes's The End of Laissez-Faire

The Taper, Nick Rowe, Quantitative Easing, and Intellectual Coordination Failures: Wednesday Focus for August 27, 2014

Nick Rowe begs for North Atlantic central banks to do what he (and I) regard as their proper job, and writes: Nick Rowe: Money, Prices, and Coordination Failures "The more interesting cases are... ...where a non-monetary coordination failure has spillover effects, and causes a monetary coordination failure. A worsening of asymmetric information problems in financial markets, which is a coordination problem in its own right, also causes an increased demand for money and a monetary coordination problem. Should we say that the problem in financial... More >

Evening Must-Read: David Kotok: Deflation Fears

David Kotok: Deflation Fears: "1. United States 10-Year Treasury Yield... ...2.4% 2. Germany 10-Yield Bund Yield, under 1%. 3. Japanese 10-Year JGB Yield, under 0.5%. 4. France 10-Year Government Bond Yield, 1.3%. 5. Canada 10-Year Government Bond Yield, 2%. 6. United Kingdom 10-Year Government Bond Yield, 2.5%. 7. Mexico 10-Year Government Bond Yield, 3.2%. 8. Italy 10-Year Government Bond Yield, 2.4%...

Moving the (Corrected) Calculations from Last Week’s Shiller Stock Market Posts into R…: Afternoon Note

Because only people who really, really, really want to make bad mistakes do things in the un-debuggable Excel (or Numbers)... The (corrected) calculations for last weekend's http://delong.typepad.com/sdj/2014/08/under-what-circumstances-should-you-worry-that-the-stock-market-is-too-high-the-honest-broker-for-the-week-of-august-16.html and http://delong.typepad.com/sdj/2014/08/under-what-circumstances-should-you-worry-that-the-stock-market-is-too-high-the-honest-broker-for-the-week-of-august-16.html: Import data from http://delong.typepad.com/20140824_Shiller_Data.csv... ...define a function (shift) for constructing leads and lags, and perform elementary data manipulations: construct variables DATE (1871:1-2014:7), REAL_PRICE (1871:1-2014:7), REAL_DIVIDENDS (1871:1-2014:7), REAL_EARNINGS (1871:1-2014:7), MA10_EARNINGS (1881:1-2014:7) (the trailing 10-year moving average of real earnings that Campbell and Shiller use as their estimate of cyclically-adjusted permanent earnings), CUMULATIVE_RETURN (the cumulative return on a... More >

Morning Must-Read: Greg Sargent: GOP’s Obamacare Repeal Follies Continue

Greg Sargent: GOP’s Obamacare repeal follies continue: "One of the most amusing subplots of the 2014 elections... ...has been the endless and frequently comic struggles of GOP Senate candidates to articulate their position on Medicaid.... Iowa Senate candidate Joni Ernst... says people on Medicaid should should be allowed to keep it.... And yet she proudly touted her vote against Iowa’s Medicaid expansion and continues to be a gung-ho advocate for repealing Obamacare, which would roll back funding for the expansion.... Ernst’s repeal stance would mean... More >

An Interesting Ad-Lib from ECB Head Mario Draghi’s Jackson Hole Speech: Morning Comment

Joe Weisenthal notes Lorcan Roche Kelly of Agenda Research on an extended ad-lib in Mario Draghi's Jackson Hole speech. Ad lib emphasized; things in the text not mentioned struck through: Inflation has been on a downward path from around 2.5% in the summer of 2012 to 0.4% most recently. I comment on these movements about once a month in the press conference, and I have given several reasons for this downward path in inflation, saying it is because of food and energy price declines; because... More >