Yesterday, The New York Times profiled Harvard professor David A. Moss, who is researching the relation between income inequality and financial crises. Apparently, this connection just “came to Mr. Moss about a year ago.” The usually-savvy financial commentator Yves Smith thinks Moss is putting forward “a bold thesis” because inequality is more likely “a secondary contributor.”

I have to admit my surprise that Moss and Smith are, well, surprised.

I wrote about this dynamic in December 2008 (and again in October 2009). Hey, can I be a Harvard professor too?   Read more…

Jim Hamilton, truly one of the best macroeconomists of his generation, may not be smiling, but he’s getting closer. At all times, Hamilton keeps a cartoon face—smiling, frowning, or neutral—on his blog Econbrowser to represent his outlook for the economy. It’s like security threat levels for the business cycle. Yesterday, Hamilton replaced the longtime frowning face with a neutral one.   Read more…