Posts Tagged ‘recession’

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    Deflation Worries

    Sep 13, 10 • 128 Views • Businesses, Demand, Supply, and Markets, Economic Debates, Macroeconomic Measurement, Money and Monetary Policy3 Comments

    We have something else to worry about: deflation. If you had $100 in 2000, you would need $126.60 in 2010 to make the same kinds of purchases. Called inflation, prices tend to go up each year. Most consumers and businesses are happy with a little inflation,...

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    The Housing Dilemma

    Sep 9, 10 • 87 Views • Demand, Supply, and Markets, Economic Debates, Financial Markets, Regulation5 Comments

    Is it time for shock therapy? Since the housing bubble popped, from tax credits to mortgage modification programs, government has tried to support housing prices. The goal was to provide support and diminish foreclosures until the market stabilized. With...

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    Spend More or Less?

    Aug 29, 10 • 120 Views • Economic Debates, Macroeconomic Measurement, RegulationNo Comments

    It was perfect. On the left side of the NY Times Op-Ed page, David Brooks defended the austerity approach. On the right was Paul Krugman saying spend more. Those are the alternatives. Maybe now it will be easier to choose one? Using Germany as his model,...

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    Double Dipping

    Aug 28, 10 • 102 Views • Businesses, Economic Debates, Government, Households, Labor, Macroeconomic MeasurementNo Comments

    For a smile, you might want to watch Merle Hazard’s “Double Dippin’” song. As the Guardian points out, also look for the fun trivia such as a small background picture of mathematician Benoit Mandelbrot. No one was smiling, though in...

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    Unopened Stimulus Packages

    Aug 19, 10 • 89 Views • Economic History, Economic Thinkers, GovernmentNo Comments

    Economists recently have been debating whether the $787 billion 2009 stimulus package has helped the economy. Perhaps first they should ask what has been spent. For a variety of reasons, recipients of stimulus money are not spending it. Dollars destined for...