A week ago, I sent to my editor my review of Tyler Cowen’s latest book, Big Business: A Love Letter to an American Anti-Hero. The book is outstanding. There are valuable facts and/or bits of economic reasoning on virtually every page. To give you an idea of how much I liked the book, I titled my review “A Love Letter to Tyler Cowen.” I’m not sure the editor will use that title.
Using census microdata on multistate firms and their organizational forms, we estimate the impact of state taxes on business activity. For C corporations, employment and the number of establishments have short-run corporate tax elasticities of −0.4 to −0.5 and do not vary with changes in personal tax rates. Pass-through entity activities show tax elasticities of −0.2 to −0.4 with respect to personal tax rates and are invariant with respect to corporate tax rates.
A technical measure of the inflation expectations of eurozone investors has fallen to its lowest level for three years, putting pressure on the European Central Bank to convince doubters that it is willing to use fresh stimulus to boost the region’s economy.
“This is an event that we paid [the Bernie Sanders campaign] for. This is an event — we bought this space,” the campaign official explained when [Kaitlin] Bennett protested. “I’m going to ask you one more time,” he said before threatening to turn the matter over to security.
For over a week, some neighbors of mine up the street put 3 nice-looking chairs in front of their house. It was their way of inviting passersby on a busy street to take the chairs. As I said, though, the chairs were there for over a week. I think they were finally picked up by the trash collector.
Hoover Institution fellow Raghuram Rajan discusses the stimulus that has been injected back into the system in China, and the Fed backing off in the US, which should be enough to stabilize the global economy even though we are slowing.
Torsten Slok of Deutsche Bank sends along the following fascinating graphs. The titles seem a little off. Yes, the market is expecting rate cuts (forward rate) but the market has been exactly wrong about everything for 10 years (and longer) first forecasting the recovery that never came, then forecasting much slower interest rate rises than actually happened. Survey expectations seem to match the forward curves well except perhaps at the very end.
The Working Group on Economic Policy brings together experts on economic and financial policy to study key developments in the U.S. and global economies, examine their interactions, and develop specific policy proposals.