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Stefanie Stantcheva
@S_Stantcheva
It’s hard to overstate how much people hate inflation—and the lasting scars this recent surge caused. People across the board, even Democrats, mainly blamed the government (see the figure👇). Check the summary 🧵for "Why do we dislike inflation?" here: x.com/S_Stantcheva/s
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Stefanie Stantcheva
@S_Stantcheva
Why do we dislike inflation? 🚨New paper for @BrookingsInst revisits this long-standing question, already asked by @RobertJShiller in 1997, with current data and survey methods. Some key findings:🧵 1/10 socialeconomicslab.org/research/worki
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David Watson 🥑
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spaceman 🦕☄️🔥 e/acc
@meteor_cultist
Should have included the prior administration as an option, considering the massive increases in government spending, tax cuts, and deficits that have been tough to roll back. Would have been interesting to see how many people are aware.
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Professor Eric Rasmusen
@erasmuse
I have a simple paper related to that, unpublished, on why firms hate nonsystematic risk (zero beta risk)-- it's because it hurts real decisionmaking. "Why Firms Reduce Business Risk Revisited: Projects with Risky Cash Flows Are Harder To Evaluate?" Firms seem to care a lot
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Professor Eric Rasmusen
@erasmuse
The thread misses, I think, a major reason people hate inflation-- the particular stresses of having to: 1. Ask the boss for a raise (which he will give, but maybe not unless you ask); and 2. Figure out relative vs. inflatoin price changes--- is it just inflatoin, or is the
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Don Rich
@Donnymack666
It's sort of money illusion the opposite way of countercyclical wage movements. People are slow to translate nominal wage increases to real wage levels, not really surprising as to Hayek-Friedman's reemphasis on prices conveying information for resource allocation. It's confusing
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David Doney
@David_Charts
What scars? CBO reported incomes outgrew inflation, so we had more purchasing power in 2023 than 2019, for all quintiles. And then there's this...
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David Doney
@David_Charts
Replying to @atrupar
Only Democrats could have an economy like this but nobody knows it. Trump told everyone that 2018-2019 the "greatest economy ever" and look how far we've come since. fred.stlouisfed.org/graph/?graph_i
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Pablo Cotler
@pablocotler
Inflation is costly. But the blame should also be in the labor market. Why didn’t wages rise at a similar rate of inflation?
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John A. List
@Econ_4_Everyone
Lecturing on experimental economics this morning and a student asked: once I have collected data, what is the best way to enhance power? My answer: use ML techniques rather than a linear regression approach to model covariates. In the attached study, we show that using ML
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