I'm not an economist by training, but that won't keep me from advancing a hypothesis or two about the worldwide economy.
My main thesis is that there are signifcant deflationary forces at work today (mostly new in the last six months), which could have unexpected consequences in the months ahead.
Not all parts of any economy are deflationary. Some are inflationary. But it's important to recognize what the deflationary forces are.
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An interesting observation from Tim Duy at Economist's View (via Ryan Avent) The European Central Bank, in particular, should be working more aggressively to counter deflationary pressures internally. But, alas, policymakers don't w... Read Post
Bearish sentiment on China has returned. Recent economic data has disappointed markets and last night's HSBC Flash PMI showed that manufacturing contracted for the first time in seven months. Remember, while China has been trying to... Read Post
MIT economist Jon Gruber writes in: Nice piece on the corporate tax. But you don’t mention one important issue and to my mind the main argument for the corporate tax: if you don’t tax corporate income, then you don’t tax the … Conti... Read Post