I'm visiting my son Paul in Seattle today (he works at Amazon as an analyst), so just a quick post for now on two topics. First is Jim Hamilton on oil prices. He explains why the "boom in domestic drilling is bringing some real benefits to the U.S. economy. But a lower gasoline price for U.S. consumers isn't one of them":
Lower gasoline prices: "U.S. gasoline prices have fallen to their lowest level in nearly 33 months amid a boom in domestic oil drilling", the Wall Street Journal declared last week. That's a true statement, but there's more to the story.
Americans are indeed facing the lowest gasoline prices in almost three years, but not by much. ...
Second, at the risk of having a thin set of links for tomorrow, Paul Krugman's discussion of Larry Summer's recent talk on secular stagnation has generated quite a few responses:
Summer's presentation at the IMF Research Conference
Krugman's first post: Secular Stagnation, Coalmines, Bubbles, and Larry Summers
Dean Baker: Bubbles Are Not Funny
Paul Krugman: Me Too! Blogging
Gavyn Davies: The implications of secular stagnation
Jared Bernstein: Paul, Larry, Secular Stagnation, and the Impact of Negative Real Rates