Readings in Economics

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    Robert J. Shiller believes that recent warnings that asset prices are rising dangerously fast may be correct. - Project Syndicate →

    But the experts’ concern is notable and healthy, because the belief that markets are always efficient can survive only when some people do not completely believe it and think that they can profit by timing the markets. At the same time, this heightened concern carries dangers, too, because we do not know whether it will lead to a public overreaction on the downside.

    — 6 minutes ago
    #robert shiller  #yale  #economics 
    Global income distribution since 1988 | vox →

    Since 1988, rapid growth in Asia has lifted billions out of poverty. Incomes at the very top of the world income distribution have also grown rapidly, whereas median incomes in rich countries have grown much more slowly. This column asks whether these developments, while reducing global income inequality overall, might undermine democracy in rich countries.

    — 2 days ago with 3 notes
    #income distribution  #income inequality  #money  #employment  #economics  #vox 
    St. Louis Fed’s Bullard Discusses Macroeconomic Goals and Monetary Policy Stance →

    To achieve its mandates of price stability and maximum sustainable employment, the Federal Open Market Committee (FOMC) has been using two main tools for implementing monetary policy: the short-term policy interest rate, which includes forward guidance, and quantitative easing. “The U.S. economy is approaching normal conditions in terms of the main macroeconomic goals assigned to the Federal Reserve,” Bullard said. “However, the policy stance of the FOMC has not begun to normalize yet.” Noting that it will take a long time to normalize monetary policy, he added, “If macroeconomic conditions continue to improve at the current pace, the normalization process may need to begin sooner rather than later.”

    — 2 days ago
    #james bullard  #federal reserve  #fomc  #monetary policy  #inflation  #employment  #janet yellen  #USA  #economics  #economic reading 
    "You know the difference between a vision and a hallucination? They call it a vision if other people can see it."
    Ben Horowitz @ Cannes Lions 2014
    — 2 days ago with 1 note
    #ben horowitz  #andreessen horowitz  #vision  #inspiration  #creativity 
    "Buy when there is blood in the street, even when the blood is your own."
    Baron Rothschild, an 18th century British nobleman and member of the Rothschild banking family.
    — 3 days ago with 1 note
    #baron Rothschild  #finance  #investing  #quotes  #economics 
    "He who will not economize will have to agonize."
    Confucius
    — 3 days ago with 1 note
    #Confucius  #quotes  #economics  #philosophy 
    Yellen's Philosophy: The More Jobs Data, the Better - Businessweek →

    Yellen monitors nearly a dozen indicators to assess the labor market’s health. Among them are long-term unemployment and the quits rate—the number of workers leaving their jobs voluntarily in a month as a share of total employment. Together the indicators give a fuller picture of how U.S. workers have fared in the five years since the recession ended.

    — 3 days ago with 1 note
    #bloomberg businessweek  #janet yellen  #federal reserve  #economics  #economic reading  #data 
    Representative Neighborhoods of the United States - Research Publications - St. Louis Fed →

    Fascinating work:

    Many metropolitan areas in the United States display substantial racial segregation and substantial variation in incomes and house prices across neighborhoods. To what extent can this variation be summarized by a small number of representative (or synthetic) neighborhoods? To answer this question, U.S. neighborhoods are classified according to their characteristics in the year 2000 using a clustering algorithm. The author finds that such classification can account for 37 percent of the variation with two representative neighborhoods and for up to 52 percent with three representative neighborhoods. Furthermore, neighborhoods classified as similar to the same representative neighborhood tend to be geographically close to each other, forming large areas of fairly homogeneous characteristics. Representative neighborhoods seem a promising empirical benchmark for quantitative theories involving neighborhood formation.

    — 3 days ago
    #racisim  #racial discrimination  #urbanization  #cities  #economics  #urban economics  #st louis fed  #federal reserve  #research 
    "Although significant economic problems remain, we have been living in equalizing times for the world — a change that has been largely for the good. That may not make for convincing sloganeering, but it’s the truth."
    — 3 days ago with 2 notes
    #tyler cowen  #inequality  #income inequality  #globalization  #money  #economics  #equality  #quotes  #hope  #optimism 
    Price Theory: @TheEconomist: Parts from some endangered species are worth more than gold or cocaine http://t.co/OWLR06BnGS http://t.co/YTzrMOxdYF

    Price Theory: @TheEconomist: Parts from some endangered species are worth more than gold or cocaine http://t.co/OWLR06BnGS http://t.co/YTzrMOxdYF

    — 3 days ago with 3 notes
    #drugs  #cocaine  #gold  #commodities  #markets  #economics  #charts  #the economist