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William J. Luther
The long run benefits of a monetary policy rule
When teaching undergraduates or talking with non-economists, I usually argue that, while the Fed can affect aggregate demand (or nominal spending), it has no effect whatsoever on aggregate supply. If economic output declines because productivity growth is lower, there isn’t anything the Fed can do. Output is lower than it would have been with higher […]
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Aaron Nathans
What’s Holding the Economy Back, in Five Charts
Throughout much of the later part of this year, our Bob Hughes has been saying the economy’s trajectory has been one of slow and steady growth. This morning, we have more evidence that this is the case.
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