CERF Blog

Mankiw has a post on the administration’s proposed changes in the tax treatment of investment.  As usual, he is right on.  The proposed treatment amounts to a zero interest loan, at a time when interest rates are already remarkably close to zero: However, the impact will be relatively modest. Notice that expensing merely accelerates deductions.… Read more

It’s not everyday that Greg Mankiw and Paul Krugman agree.  When they do, it’s worth thinking about.  Here are their blog posts: Krugman & Mankiw. The topic is a Taylor Rule, which is a method, proposed John Taylor, for determining what Fed Policy should be.  That is, what is the interest rate that the Fed… Read more