Friday, July 25, 2014


CNN Money | Argentina is now very close to default
The clock is ticking. Argentina will default in just a few days unless the country can find a way to satisfy creditors that are owed roughly $1.5 billion.

Library of Economics | Nick Rowe on fiscal policy (and reply to Caplan)
The average reader of the New York Times probably thinks he knows about fiscal policy. "We know that Y=C+I+G+NX, so we can see that higher G increases Y. And monetary policy works because lower interest rates increase I, if we can cut interest rates. And Nick Rowe is just obfuscating, no doubt for political reasons, by ignoring that simple obvious mechanism."
WSJ | ECB Paper Identifies Most Growth-Friendly Cuts
A European Central Bank paper has weighed in on a big debate among economists in recent years: how much of an effect fiscal belt-tightening has on the economy.