Paul Krugman noted on his blog Friday that the Federal Reserve’s estimate of the Non-Accelerating Inflation Rate of Unemploment (NAIRU), in other words the predicted lowest level of unemployment that won’t cause inflation to rise, has been falling for several years. “Estimates of how low U can go seem always to be a bit below the current level of unemployment,” he writes, and produces the following chart:
This chart reminded me of another visual, one that made quite an impact on me when I first saw it as an impressionable college student. Continue reading
Those of you who are not regular readers of the economics blogosphere have missed a hugely entertaining spectacle over the summer: prominent and articulate economists have been fighting passionately about whether economics is a science. In doing so, they’ve been attempting to answer some very fundamental questions, like what makes science science, what makes scientists scientists (and thus some economists scientists and others not), when some economists stopped being scientists, what economists think other economists think about what science is, when some economists stopped thinking other economists thought the same thing about what science is, and who insulted whom at a conference in Edgartown, Massachusetts in 1978.
Like introductory econ textbooks, some of the most widely-read econ blogs are written by heavy hitters within the profession, who somehow manage to balance teaching and research loads with astronomical levels of blog output. Continue reading