Tweet
Mar 4
Why additions to cash balances cannot be categorized as consumption or saving/investment. 🧵
We only say a burrito is a consumption good because that is the way it is virtually always used. We say a forklift is a producer's good for the same reason.
We only say a burrito is a consumption good because that is the way it is virtually always used. We say a forklift is a producer's good for the same reason.
Tweet
Feb 20
Look at this diagram for sticky wages by MRU (Cowen and Tabarrok). It clearly shows a mismatch between Qs and Qd in a labor market.
Pay close attention to the causes of sticky wages as explained by Tabarrok:
Pay close attention to the causes of sticky wages as explained by Tabarrok:
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