Tag Archives: monetary policy

Boehner Ignores Evidence on the Effects of Lowering Marginal Tax Rates

Yesterday, John Boehner during a Meet the Press interview said lowering marginal tax rates will promote more economic growth. He was challenged a bit by David Gregory but as usual the journalist was ill prepared for the debate. Boehner indicated … Continue reading

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Contractionary Monetary Policy Increases Income and Consumption Inequality in the U.S.

In many posts I have identified increasing income inequality in America and variables related to increased inequality. Coibion (et al., 2012) identify an additional “cause” of rising income and consumption inequality — monetary policy. Specifically the authors find: “Contractionary monetary policy … Continue reading

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The Economic Effect of Letting Bush Tax Breaks for the Wealthy Expire

One of the most contentious issues facing the nation is developing a plan to avoid going over the fiscal cliff. Obama desires to let all of the Bush tax cuts expire except for those who make more than $250,000 a … Continue reading

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The Des Moines Register’s Endorsement of Romney Doesn’t Conform to the Facts

The Des Moines Register’s endorsement of Governor Romney is based on the view that the candidate will improve the economy, create new jobs and reduce the deficit. The endorsement also has great expectations for Romney’s ability to bring Democrats and … Continue reading

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Do Cuts in Personal Income Taxes Foster Economic Growth? Again No, According to the Evidence

This post is for my good, well-intentioned, friends who still believe personal income tax cuts foster economic growth. Finding research by people who were advocating supply-side, trickle-down economics during the Reagan years and then after examining the evidence conclude it … Continue reading

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Keynes Right Again, But Add Behavioral Economics

A very thoughtful article by David Romer reflects on the lessons learned from the Great Recession. I am quoting liberally from the article as I believe Romer addresses several learned lessons which should provide prudent advice to all policymakers and … Continue reading

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Dow Increases 98 Percent in Three Years!

If your crystal ball was working properly on March 9, 2009, you might have invested heavily in a Dow Jones indexed fund. On March 9, 2009, the Dow reached a recession low of 6,547.1. Three years later on March 1, … Continue reading

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