Category: Uncategorized

09/03/21 Podcast – Authors Glenn Hubbard & Tony O’Brien discuss the recent jobs report, Fed comments, and financial stability!

Authors Glenn Hubbard and Tony O’Brien discuss the recent jobs report falling short of expectations. They also discuss the comments of Fed Chairman Powell’s comments at the Federal Reserve’s recent Jackson Hole conference. They also get to some of the recommendations of a Brookings Task Force, co-chaired by Glenn Hubbard, on ways to address financial stability. Use the links below to see more information about these timely topics:
Powell’s Jackson Hole speech: 

https://www.federalreserve.gov/newsevents/speech/files/powell20210827a.pdf 

The report of Glenn’s task force: 

https://www.brookings.edu/wp-content/uploads/2021/06/financial-stability_report.pdf 

The most recent economic forecasts of the FOMC: 

https://www.federalreserve.gov/monetarypolicy/files/fomcprojtabl20210616.pdf

Menu Costs in the Digital Age

Inflation imposes a number of costs on households and firms (see our discussion in Economics, Chapter 19, Section 19.7 and Macroeconomics, Chapter 19, Section 19.7). Economists call the costs to firms of changing prices menu costs. For instance, when supermarkets raise prices, employees have to spend time changing the prices posted on shelves. 

When restaurants raise prices, they have to print new menus (hence the general name economists give to these costs). Particularly during the Covid-19 pandemic, the trend toward having digital menus rather than paper ones increased.  But even with digital menus, a restaurant incurs some costs, as this sign in a coffee shop indicates. An employee has to update the digital menu to reflect the new prices and, in the meantime, the shop may experience friction from customers who see one price on the digital menu and are charged a higher price when they pay at the register. 

H/T Lena Buonanno

WELCOME BACK! New 08/20/21 Podcast – Authors Glenn Hubbard & Tony O’Brien return to discuss delta variant & inflation!

Join authors Glenn Hubbard and Tony O’Brien as they return for a new academic year! The issues have evolved but the importance of these issues has not waned. We discuss the impact of closures related to the delta variant has on the economy. The discussion extends to the active fiscal and monetary policy that has reintroduced inflation as a topic facing our economy. Many students have little or no experience with inflation so it is a learning opportunity. Check back regularly where Glenn & Tony will continue to wrestle with these important economic concepts and relate them to the classroom!

Mickey Takes His Econ Final! Has the O’Brien Family Dog Bitten Off More Than He Can Chew?

How am I supposed to study with all of the distractions around here?
Maybe it wasn’t a good idea to study outside today.
The stress of studying got to me!
You were expecting me to walk to my review session?
I got an A! Summer here I come!

Walter Williams, 1936-2020

Walter Williams

Walter Williams, John M. Olin Distinguished Professor of Economics at George Mason University, died on December 2, shortly after teaching class. In addition to his academic publications (listed HERE), Williams was a spirited participant in public policy debates through his syndicated columns and television appearances. Some of his recent columns can be read through the links HERE. An appreciation by Thomas Sowell of Stanford’s Hoover Institution can be read HERE. 

Now for Something Completely Different: Mickey Does Econ!

The O’Brien family dog takes a bite out of the Dismal Science. 

Hmm. Should I keep playing in the leaves or should I do my MyLab assignment on opportunity cost?

Would you please explain the formula for price elasticity one more time?

Why did I sign up for an 8 am Econ class?

No, Mickey, you can’t copy my class notes. You need to start getting up on time!

My TA is always so helpful!

Freakonomics Podcast: Is $2 Trillion the Right Medicine for a Sick Economy?

Hear Glenn Hubbard with Stephen Dubner on a recent Freakonomics Podcast. Glenn and other economists discuss the fiscal response to the COVID-19 economic crisis. https://freakonomics.com/podcast/covid-19-cares-act/