Wrap Up for September 2016

Long term growth relies on the progress which is embedded in primary markets. These markets serve as an important scaffolding for international wealth, yet tradable sectors continue to suffer. Much of this is due to the interminable lack of support for aggregate spending capacity on the part of central bankers, which also means continued declines in commodity value. Were it not for a recent post from Bonnie Carr, in which she  highlighted a Bloomberg article, I wouldn't have realized that food prices have continuously declined for nine months. Yet how many have noticed? From Bloomberg:

In a startling development, almost unheard of outside a recession, food prices have fallen for nine straight months in the U.S...."The severity of what we're seeing is completely unprecedented", said Scott Muskin, an analyst at Wolfe Research, who has studied grocery prices around the country for more than ten years. "We've never seen deflation this sharp."

And when central bankers allow commodity prices to fall for extended periods, services are sure to follow.

What is classical economics? I came across a blog post recently, which provides some quick yet helpful answers: http://econ488.umwblogs.org/course-outline/topic-2/what-is-classical-economics/

Monetary easing is not a beggar-thy-neighbor policy (Lars Christensen)

Will Wilkinson, "The Great Enrichment and Social Justice"

"There are far more data points on millions of uses than there are on thousands." http://www.hoover.org/research/fdas-power-grab

Derek Thompson interviews Ryan Avent: http://www.theatlantic.com/business/archive/2016/09/the-next-industrial-revolution/498779/

Also from the Atlantic: "The problem with inequality, according to Adam Smith"

Ryan Avent has good questions for Scott Sumner

David Glasner takes a closer look at some historical aspects of monetary rules.

Sandy Ikeda notes some contrasts between Henry George and Jane Jacobs

A paper from Paul Romer, "The Trouble With Macroeconomics", was the subject of considerable discussion this month.

"Are the long term unemployed on the margins of the labor market?"

What makes the cities of Africa different? (The Economist)

Asset sharing was temporary...http://www.digitopoly.org/2016/09/20/neither-uber-nor-lyft-believe-sharing-is-the-future/

Part 7 of George Selgin's Monetary Policy Primer, on monetary control.

Hernando de Soto has not given up on globalization.

It shouldn't be long before more students become aware of the loan forgiveness that is already available...
https://www.brookings.edu/research/the-coming-public-service-loan-forgiveness-bonanza/

The risk is substituting one ideology for another:
http://oecdinsights.org/2016/09/26/complexity-theory-and-evolutionary-economics/

James Pethokoukis points out the extreme nature of Trump's "doom and gloom" approach:
http://www.vox.com/the-big-idea/2016/9/28/13081298/conservative-trump-apocalyptic-america-optimism

"Trade did not cause the breakdown in economic growth. Indeed, trade has helped generate what growth remains. But the pervasive stagnation has left little cover for those set back by globalization."
http://www.nytimes.com/2016/09/29/business/economy/more-wealth-more-jobs-but-not-for-everyone-what-fuels-the-backlash-on-trade.html?partner=rss&emc=rss

Not really sure why ever more (sprawling) suburbia needs strong advocacy, since it has already continued apace for decades. That said, greater population densities and viable walkable options for working and living, are more important than today's special interests are willing to concede. http://marketurbanism.com/2016/09/29/joel-kotkins-new-book-lays-out-his-sprawling-vision-for-america/