Posts you may have missed in the blogosphere this week...Ride em econ cowboys!
1. Matt Yglesias reminds us that it is never wise to give our money to the experts, no matter how much money they make for themselves.
2. Tyler Cowen argues that inequality, at least recently, has been mostly about stagnating incomes and the explosion of the income of the top 0.1%. Very true. (Tyler's post also contains some insults in an addendum at the bottom, which I do not endorse.)
3. John Cochrane demonstrates the perils of over-differencing time series data. This is a specific case of a very deep problem with time series econometrics: rigid lag structures.
4. Steve Keen has a great essay on the problems facing the field of macroeconomics.
5. James Kwak explains how private equity works, how it is is supposed to benefit the economy, and how it might not actually benefit the economy.
6. David Glasner reminds us that Reagan didn't think 4% inflation was such a bad thing.
7. Brad DeLong uses an equation to explain his thinking on fiscal policy. Unlike a lot of people in the blogosphere, I love it when people do this. And here, he explains his thinking on monetary policy. Read!
8. Scott Sumner points out that Britain talks a lot about austerity but has actually been running big budget deficits.
9. Intra-blog civil war at Modeled Behavior, as Karl Smith doubts that government workers can be overpaid, while Adam Ozimek thinks they most definitely can. I score this one for Adam (to see why, consider the marginal product of Chairman Mao and compare it to his total compensation package). In fact, Adam is so obviously right that I hereby award Karl a bat boy! ;-)