Commentary on "Long-run risks and financial markets"

Financial markets ; Risk

Rational Expectations, the Real Rate of Interest, and the Natural Rate of Unemployment

macroeconomics, real rate interest, unemployment rate

"Rational Expectations": A Correction

macroeconomics, rational expectations, unemployment

Interest rate risk and other determinants of post WWII U.S. government debt/GDP dynamics

This paper uses a sequence of government budget constraints to motivate estimates of returns on the U.S. Federal government debt. Our estimates differ conceptually and quantitatively from the interest payments reported by the U.S. government. We use our estimates to account for contributions to the evolution of the debt-GDP ratio made by inflation, growth, and nominal returns paid on debts of different maturities.Holding period returns, capital gains, inflation, growth, debt- GDP ratio, government budget constraint

A supply-side explanation of European unemployment

This article offers a supply-side explanation of striking patterns in unemployment rates and duration of unemployment in European countries, compared with other member countries of the OECD (Organization for Economic Cooperation and Development). The rise in long-term unemployment in Europe is attributed to the adverse incentive effects of generous welfare programs in times of economic turbulence.Unemployment - Europe