The Business-Cycle History of the Past Thirty Years Through the Lens of Aggregate Demand: Four Components of Multiplier-Driving Spending

As Paul Krugman says at every opportunity, if you knew nothing of macro after 1975���if you were just armed with sticky-price IS-LM���you would have done an excellent job at understanding the U.S. economy since 2008. I want to point out that this holds true for more than the past ten years: this holds true for the past thirty years as well:

Business Investment, Residential Construction, Government Purchases, Exports

All as Shares of Nominal Potential GDP

All as Percentage-Point Deviations from 2007QI Values...

 

Generating a High-Investment High-Productivity Growth Economy: The Clinton-Deficit-Reduction Program

 

The Collapse of the Dot-Com Boom

 

The Housing Bubble-Led Recovery

 

Managing the Collapse of the Housing Bubble

 

The Financial Crisis and the Great Recession

 

Not-So-Covery Summer

 

Drift and Austerity

 

Declaring the New Normal to Be Victory

#macro #monetarypolicy #monetarytheory #fiscalpolicy #highlighted