With the end of 2017 approaching, let’s take a look back at the 10 most popular Value Added posts this year:
Is the Fed being misguided by the Phillips curve? | June 21, 2017
One of the biggest trends in the U.S. economy this year was the lack of acceleration in inflation. The Federal Reserve kept thinking—and continues to think—that inflation is just around the corner. But does the model behind its thinking still hold up?
U.S. income inequality trends in the 21st century | April 17, 2017
The rise in income inequality beginning in the late 1970s was due to higher inequality of labor income—wages and salaries. But starting around the beginning of the 21st century, U.S. income inequality started to look different. Capital income started playing a bigger role.
How corporate profit-shifting distorts the measurement of U.S. productivity | April 10, 2017
Corporate profit-shifting abroad was discussed quite a bit this year in the context of changes to the tax code. But the ability of corporations to shift profits overseas has an interesting impact on economic statistics: distorting productivity growth figures.
What’s the problem a U.S. corporate tax cut is supposed to solve? | February 23, 2017
What will boost business investment growth in the United States? One hypothesis (a favorite of many Republican policymakers) argues that reducing the cost of financing investment will significantly boost investment growth. There’s some reason to be skeptical of that argument.
Time for the Fed to look beyond 2 percent target inflation? | June 13, 2017
Frustration with the current monetary policy response to sub-2 percent inflation could lead to complaints that the current rules aren’t being followed or to requests for new ones. The 2 percent inflation target might have been the right target at a certain point in time, but it looks like its time has passed. The conversation to have is how much policymakers want to shake things up.
Another take on declining productivity growth in high-income countries | March 28, 2017
What’s behind the weak productivity growth in the United States and other high-income countries? No one is sure quite yet. But research looking at the impact of new startups and old firms closing suggests something is wrong with workers moving between firms.
A potentially new and rising concern: inflation inequality in the United States | March 14, 2017
Do prices fall or rise equally for everyone in the U.S. economy? Research published this year makes a case that declines in prices for goods and services are much stronger for high-income households.
The gender gap in economics has ramifications far beyond the ivory tower | October 30, 2017
“[G]iven the extent to which every individual’s life is intertwined with the economy,” writes Bridget Ansel, “the need to increase diversity in economics is not just about fairness or productivity within the ivory tower. It affects whether and how the needs of everyone—and not just certain groups—are reflected in our understanding of the economy and accounted for in our national policies.”
Monetary policy via income redistribution | June 5, 2017
What does redistribution have to do with monetary policy? Quite a bit, according to a working paper published this year. By shifting money toward households most likely to spend their next dollar, monetary policy may be expansionary because it is redistributionary.
Is declining competition causing slow U.S. business investment growth? | July 18, 2017
U.S. policymakers say they are concerned about weak business investment, but what’s behind this trend? Research finds an important role for declining competition in the United States in holding back corporate investment.