Author Archives: Richard S. Grossman

Penny wise and pound foolish

The institutions of government and the politicians who run them have–rightly–been criticized for many mistakes during the past few years.   The Congressional budget deadlock this past summer is a case in point.  The mismanagement at Walter Reed Army Medical Center, … Continue reading

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Alan Meltzer’s straw “Keynesian”

Remember when “liberal” became the insult of choice among Republicans? Apparently, “Keynesian” has now taken on that status for Republican economists.  Never mind that Keynesian is ill-defined (old Keynesian?  new Keynesian?  the Keynesian part of the neoclassical synthesis?)–making Keynesian a … Continue reading

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See no evil, hear no evil, and, if you are a ratings agency, speak no evil

You don’t have to look too far to find nutty policy proposals. One of my favorites is  Herman Cain’s suggestion that Congressional bills be limited to no more than three pages. Another, reported in recent days by both the Financial … Continue reading

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Prize (for a) failure

British clothing retailer Simon Wolfson (known to his friends in the House of Lords as Baron Wolfson of Aspley Guise) announced several days ago the establishment of the Wolfson Economics Prize (read the press release here).   The prize, worth … Continue reading

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John Cogan and John Taylor confuse temporary and permanent

In a recently published op-ed piece in the Wall Street Journal, Stanford economists John Cogan and John Taylor argue that: “Temporary, targeted tax reductions and increases in government spending are not good economics. They have repeatedly failed to increase economic … Continue reading

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The long run and short run of it

When you teach economics, you spend a fair amount of time dwelling on the distinctions between the short run and the long run. If a firm is not making a profit but is meeting its short-run costs (e.g., wages, utilities), … Continue reading

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Gary Becker and the law of the jungle

The sub-prime crisis and the ensuing economic slowdown have led many to question some widely held economic tenets, particularly the belief that unfettered markets inevitably lead to the best of all possible outcomes. Writing in yesterday’s Wall Street Journal, University … Continue reading

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A policy worth considering

The White House has already given some indication of the sort of proposals it will put forward after Labor Day to help boost the economy.  These include extending payroll tax cuts for another year, extending unemployment benefits, and speeding the … Continue reading

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WSJ op-ed board member: The unemployed prefer sitting on their duffs to working

Writing in today’s Wall Street Journal, WSJ op-ed board member Stephen Moore offers a variety of dubious–and at least one outrageous–opinion on the economy and eocnomic policy. (1) The economy would be in better shape today in the absence of … Continue reading

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The monetary musings of Gov. Rick Perry

Texas Governor and Republican presidential candidate Rick Perry, “…brought the Fed directly into the campaign debate Monday night by saying it would be ‘almost … treasonous’ for the central bank to play politics by expanding the money supply. “‘If this … Continue reading

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