Latest Stories
Electronic Frontier Foundation
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Don’t Fall for the Intelligence Community’s Monster of the Week Justifications
September 22, 2023
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This Bill Would Revive The Worst Patents On Software—And Human Genes
September 21, 2023
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Today The UK Parliament Undermined The Privacy, Security, And Freedom Of All Internet Users
September 19, 2023
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We Want YOU (U.S. Federal Employees) to Stand for Digital Freedoms
September 19, 2023
The Intercept
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The Secret History of How the Super-Rich Have Kept the Working Class Out of Work
September 23, 2023
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Menendez "Appreciated" Meeting With Egypt Dictator Amid Alleged Bribes for Arms Sales
September 22, 2023
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North Carolina GOP Hides Redistricting Process From State Public Records Law
September 22, 2023
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Inside Biden’s Secret Arms Deal
September 22, 2023
VTDigger
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Zoning spat in Morristown paved over as tenants fill affordable apartments
September 22, 2023
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About 1,500 in Vermont will get Medicaid back following new federal directive
September 22, 2023
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Wildlife activists want animal cruelty charge applied to deer poaching case
September 22, 2023
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FEMA extends Vermont flooding disaster declaration to cover 4 additional days in July
September 22, 2023
Mountain Times -- Central Vermont
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September 22, 2023
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Mountain Times – Volume 51, Number 38 – Sept. 20-26, 2023
September 21, 2023
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Are you ready for the Rollins? He’s ready for you!
September 20, 2023
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‘Baby it’s not so cold outside’
September 20, 2023
NEW YORK – The world economy is undergoing a radical regime shift. The decades-long Great Moderation is over.
Coming after the stagflation (high inflation and severe recessions) of the 1970s and early 1980s, the Great Moderation was characterized by low inflation in advanced economies; relatively stable and robust economic growth, with short and shallow recessions; low and falling bond yields (and thus positive returns on bonds), owing to the secular fall in inflation; and sharply rising values of risky assets such as U.S. and global equities.
This extended period of low inflation is usually explained by central banks’ move to credible inflation-targeting policies after the loose monetary policies of the 1970s, and governments’ adherence to relatively conservative fiscal policies (with meaningful stimulus coming only during recessions). But, more important than demand-side policies were the many positive supply shocks, which increased potential growth and reduced production costs, thus keeping inflation in check.
During the post-Cold War era of hyper-globalization, China, Russia, and other emerging-market economies became more integrated in the world economy, supplying it with low-cost goods, services, energy, and commodities. Large-scale migration from the Global South to the North kept a lid on wages in advanced economies, technological innovations reduced the costs of producing many goods and services, and relative geopolitical stability allowed for an efficient allocation of production to the least-costly locations without worries about investment security.
READ MORE: Project Syndicate