What happened in this recovery is that we settled into trend growth before we bounced back and repaired the damage. That's why the job market in particular has taken so long to recover.
To assert that economists are having trouble figuring out the relationship between inflation and unemployment is like saying chefs can't figure out what to do with salt and pepper. It's that fundamental. Yet, we're befuddled, and that has powerful policy implications.
The widespread expansion of credit to car-buyers, especially to sub-prime borrowers, is beginning to cause some industry observers to cry "bubble." Is this economic progress?
Federal Reserve Board Chair Janet Yellen made waves in her Congressional testimony last week when she argued that social media and biotech stocks were over-valued. She also said that the price of junk bonds was out of line with historic experience. By making these assertions in a highly visible public forum, Yellen was using the power of the Fed's megaphone to stem the growth of incipient bubbles. This is an approach that some of us have advocated for close to twenty years.
America loves an underdog, a scrappy competitor who manages to beat the odds. By staying so low for so long, interest rates have not only beaten the odds in recent years, they've laughed right in their face. The question is, how long can interest rates keep doing it?
If GDP growth is that dependent on workforce growth, and 1990s growth repeats itself -- which was the longest uninterrupted economic expansion in our history that also gave us four years of budget surpluses -- then we may see the next generation about to take charge. They could turn out to be much more industrious than we know!
Germany represents everything that's wrong with the world financial system. Argentina is the epic case of countries whose economies are screwed by policies championed by Germany -- and unfortunately by the United States as well.
We will not see a real recovery that puts even the long term unemployed back to work, until the mountain of private debt is reduced. And that can't happen until we create full employment policies that continue to create more jobs on Main Street.
We, humans, are the source for creating something new. We are the source for creating new systems, organizations, governments and a world that actually works for all people. And a world that can be so much more thrilling, unpredictable and abundant. We can make it all up... again.
Jamie Dimon is currently both chairman and CEO of JPMorgan Chase without a succession plan. You may also recall that prior to the London Whale debacle...
If you asked the average person how they feel about the Federal Reserve's latest economic projection that trimmed its estimate of 2014 U.S. GDP growth to a range of 2.1-2.3 percent, they would probably say that's not so hot -- not a recession, but quite depressing nonetheless.
That is, we have to end those policies that have lowered tax revenues and limited government spending for too long. They have literally been counter-productive, and hobbled economic growth.
Achieving financial stability will continue to require risk management skills, good governance, personal ethics, and, above all, courage to act to prevent further deterioration of finance.
Whatever power plays are going on behind the scenes, it is increasingly clear that they are not serving we-the-people.
The short answer is that higher inflation comes from higher growth rates, and so when an economy expands robustly, then prices should also rise robust...
As expected, the Federal Reserve stuck to its pattern of reducing asset purchases by another $10 billion. The monthly pace is now down to just $35 bi...