The Fallacy of Weak Productivity Growth

Models of the economy are pretty useful tools.  And simple models are some of he most useful.  They help people envision how the world works.  They help organize thinking. For Example, the model that says the potential U.S. economic growth is determined by “population (labor force) growth” plus “productivity” is an elegant model that shows […]

Why Inflation Has Stayed So Low

Globalization, demographics, technology have helped to keep inflation low Key takeaways: Globalization, demographics, technology have been helping to keep a lid on inflation. Continued low inflation could be a headwind for the performance of Treasury Inflation-Protected Securities (TIPS). Low inflation helps to justify above-average valuations for stocks. In the wake of the financial crisis, the […]