Does high-interest policy constitute fiscal stimulus?

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vnatale
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Does high-interest policy constitute fiscal stimulus?

Post by vnatale » Sat Feb 10, 2024 10:51 am

Another topic frequently discussed here.


https://andolfatto.blogspot.com/2024/02 ... itute.html

Does high-interest policy constitute fiscal stimulus?
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."
boglerdude
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Re: Does high-interest policy constitute fiscal stimulus?

Post by boglerdude » Sat Feb 10, 2024 10:34 pm

Economy is "booming" because government boot is off its neck. And low-skill real wages got cut by whatever amount they increased the money supply minus the mandated increases in min wage.

Unrelated content. Held my attention for an hour but couldnt get all the way through: https://elan.school/
D1984
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Re: Does high-interest policy constitute fiscal stimulus?

Post by D1984 » Sun Feb 11, 2024 11:41 pm

boglerdude wrote:
Sat Feb 10, 2024 10:34 pm
Economy is "booming" because government boot is off its neck. And low-skill real wages got cut by whatever amount they increased the money supply minus the mandated increases in min wage.

Unrelated content. Held my attention for an hour but couldn't get all the way through: https://elan.school/
Are you 100% sure about this? Arin Dube--who is an economist who studies this sort of thing for a living--would certainly disagree with you (see https://twitter.com/arindube/status/1724265679623274974 ; https://www.nber.org/system/files/worki ... w31010.pdf ; https://www.project-syndicate.org/comme ... be-2024-02 ; and https://washingtonstatestandard.com/202 ... st-states/ ). There has from late 2019 to December 2023 been enough of a rise in the (real, inflation-adjusted) average wages of the bottom rungs of the economic ladder to undo more than 3/8ths of the increase in inequality between the bottom and the near top (the gap between those at the tenth percentile and those at the ninetieth) over the past forty years. There were similar (albeit not nearly as large) effects for the middle vs the those at the eightieth and ninetieth percentiles. Tight labor markets tend to do that.

There's still a long way to go, but any progress is welcome.
boglerdude
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Re: Does high-interest policy constitute fiscal stimulus?

Post by boglerdude » Mon Feb 12, 2024 6:05 am

Only thing I'm 100% sure of is Vinny.

Housing affordability is record low. But why should low skill labor get increased real wages. Automation and immigration is increasing.

Wage gap narrowing might be explained by less productive (overpaid) degreed folk getting demoted by work from home.

Comment section on immigration: https://marginalrevolution.com/marginal ... -boom.html
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