Plain Sense Economics

This is probably too much from one blog in a single day (a single hour even!) but this account of the substantive and not so substantive activities at a meeting of the Federal Open Market Committee is fascinating.
From Economix in today’s New York Times

Economix: Come With Me to the F.O.M.C.: A Sneak Peak Into Fed [...]

From the Economix blog in The New York Times -
Economix: Bang for Your Stimulus Buck
By Catherine Rampell
Published: October 29, 2008
The Economic Policy Institute last week created a graphic with estimates of how effective various types of economic stimulus plans would be. The numbers come from Mark Zandi, an economist who, though a registered Democrat, [...]

In Principles of Micro class last week we talked about how sellers will reduce production when market prices fall. Lower prices mean less opportunity for profits, and usually lead to lower output.
Here’s an article in today’s Wall Street Journal, that illustrates this point.Refiners Look to Reduce Production as Falling Gas Prices Cut Into Profits
Here’s the [...]

Greg Mankiw published this article in the October 26 New York Times. From the opening few paragraphs -

But when Olivier Blanchard, the I.M.F.’s chief economist, was asked about the possibility of the world sinking into another Great Depression, he reassuringly replied that the chance was “nearly nil.” He added, “We’ve learned a few things in [...]

Meltdown turns nerdy economists into hottiesBy JAMES A. FUSSELLThe Kansas City Star23 Oct 2008In the past month Sarah Frazelle has grown unusually popular. People are calling, e-mailing, seeking her counsel. The reason for the sudden interest? Her master’s degree in economics. “I actually have friends who haven’t talked to me in years who are…read more…
Tech [...]

Our focus during the banking/credit crisis has been on the supply side of the equation – shaking the tree, opening the spigot (pick your metaphor) to release more money into the economy for borrowers.
We’re hearing more opinions now that our attention needs to turn to fiscal policy initiatives, which largely deal with the demand side. [...]

My head’s spinning with all of the once-in-a-lifetime monetary policy and other government action going on. Even so, this is a good moment to stop and review, in simple terms, what kind of problems the Federal Reserve and the Treasury Department are dealing with and what steps they are taking. …very simple terms…
Liquidity / [...]

This article in The New York Times, by theoretical physicist Mark Buchanan, complains that economists rely too heavily on outdated views of how markets work. There’s lots to think about here, and perhaps argue with, but it is a very thoughtful piece worth a read.
a quick excerpt…
Well, part of the reason is that economists still [...]

There’s an old Chinese curse, “May you live in interesting times!” Well, we are certainly living in interesting times.
In my econ classes we’ve started looking at the current financial/banking/credit crisis. It’s complicated, and much of it I don’t understand. Still we need to stay as informed as possible and look for resources to understand the [...]