Posts tagged 'Tyler Cowen'

You can see the computer age everywhere but in the investment statistics

In case you missed it on Wednesday, Andrew Smithers’ letter to the FT offers a delightfully simple explanation to the productivity puzzle that continues to baffle the world.

It’s all because of a lack of investment.

Or, as Smithers puts it:

Sir, Productivity is not, as you claim, “the puzzle that baffles the world’s economies” (editorial, May 30). It is caused by low investment, which is essential to make technology effective. Productivity is not lower in China than in the US because good technology is unknown but because the capital stock is much lower. Equally US productivity does not reflect the use of the best technology. The average company is less productive than the best and cannot catch up without more investment.

 Read more

On cash hoarding

Krugman’s had a go, Cowen’s had a response and now Roche has weighed in.

So why are corporates hoarding cash, and is this good or bad for the economy? Read more

Post-crisis lens

Tyler Cowen writes:

In one very real sense, there is a significant demand shortfall. Yet repairing that demand shortfall requires many building blocks. Nominal reflation (which I favor) is only one of those building blocks. The others are rooted in trust and perceived real wealth, which are both slower to repair and require different policy instruments, plus the mere passage of time. Read more

Google adventures out along the yield curve [updated]

By John McDermott and Cardiff Garcia

Here’s a corporate bond mystery for you. Read more

The BoE and central bank forecasting

Central banks are no strangers to criticism, but we wonder if the Bank of England was remotely prepared for the smackdown it was just given by FT economics editor Chris Giles:

The forecasts used by the Bank of England to set interest rates are biased and contain little useful information, a Financial Times audit has demonstrated. Read more