One potential problem with the Fed’s vote to raise interest rates: The Fed might not know how the economy works
The Fed bases its decision on one theory of the relationship between unemployment and inflation. But that theory may be wrong.
Louis D. Johnston
Louis Johnston writes Macro, Micro, Minnesota for MinnPost, reporting on economic developments in the news and what those developments mean to Minnesota. He is Professor of Economics at College of Saint Benedict | Saint John’s University.
Why ‘simple economics’ is often wrong, and other book recommendations for the econ lover in your life
Reads on economic misunderstandings, the sources of Western prosperity, and slavery in the modern world.
Why protectionist trade policies would hurt northern Minnesota, not help it
Advocates for tariffs need to answer two important questions.
In latest jobs numbers, a vindication for Minnesota’s policy choices
With better employment growth and a slightly lower decline in wages, Minnesota outperformed its neighbors in the upper Midwest.
That Center of the American Experiment report on the Minnesota economy? It’s politics, not economics
Minnesota’s slower growth has an explanation in economic theory — and it’s got nothing to do with taxes or regulation.
What Americans should demand from Trump and Clinton on economic policy
We should require from all of our candidates: specific goals with mainstream, realistic economic policies to meet them.
No, broadband and garbage collection aren’t public goods. Here’s why they might require regulation anyway
Market failures aren’t just limited to things like national defense.
What is ‘Brexit’ and why should Minnesotans care?
The UK votes in a week on whether or not to remain in the European Union.
An economist’s argument against calling a special session
Minnesota’s budget outlook is cloudy. More legislating won’t help.
Why you shouldn’t feel too grateful to Delta for hiring people to help with the TSA security-line crunch
The airline is spending money to help solve a problem largely of the industry’s own creation.
What’s the value of teaching the liberal arts? Ask Adam Smith
The exponential rise in economic growth over the past 500–800 years had everything to do with spread of ideas in philosophy, politics, natural science, and social science.
Kocherlakota takes on the hottest controversy in monetary policy
The Minneapolis Fed president issued a direct challenge to the rules-based approach — pioneered by Minneapolis economists — that has dominated monetary policy for the last three decades.
As the ruble tumbles, Putin stumbles — and upheaval looms in Russia
Here’s what’s behind Russia’s ruble crisis and why Vladimir Putin is offering no change in his unstable policies.
Kocherlakota to step down: three ways he changed the Minneapolis Fed
Kocherlakota faced the same problem faced by Gene Bartow when he succeeded John Wooden as UCLA’s basketball coach: you will always be compared with your predecessor.
Forget ‘Freakonomics.’ Three (plus) books for the econ buff on your list
These books can help anyone understand what economics is really about.
Stagnation or exponential growth — considering two economic futures
Will the trajectory of economic growth started two hundred years ago continue unabated, or has it already tapered off?
Is there hope for cutting through gridlock? John Brandl shows us a way
Brandl’s starting point for public policy was that “only competition and community can dependably channel the efforts of free people to public purposes.”
Four more charts pointing to some deep problems with the labor market for people without a college degree
The situation is better for women without a college degree than for men. But that just raises some larger questions about the labor market as a whole.
Four charts showing that the labor market is utterly broken for men without a college degree
The data clearly shows something policy makers must come to terms with: that the labor market for men with less than a college education is not working.
Enjoy the Internet, GPS or student loans? Then you should celebrate Sputnik Day
Fifty-seven years later, the moon landing is only the most conspicuous result of Sputnik’s launch.
