On the blogs
The One Percent, Updated -- Greg Mankiw on Piketty and Saez inequality measures, and clueless as always. He thinks nobody noticed that inequality increased starting in the 1980s. Seriously?! It's all over the place in, for example, Jamie Galbraith's Created Unequal in the late 1990s.
Did Argentina Default? -- T. Sabri Öncü and Jorge Vilches say no. Via Yves Smith.
Q. and A. With Charles Plosser of the Fed -- Charles Plosser, Real Business Cycle and inflation hawk president of the Philadelphia Fed, fears that the Fed is retreating too slowly from its stimulus campaign. Oh well.
Graph/Table of the Week: Bernanke’s Fed and Yellen’s choices -- My URPE blog post. I fear the opposite, that the Fed will retreat to fast. Don't go over too much, but the point is WE ARE NOT AT FULL EMPLOYMENT; the natural rate (which doesn't exist, even if there is a capacity limit) is not 5.5%.
4th Quarter GDP: Happy Days Are Here Again (not) -- Dean Baker on why the annual 2.5% growth is not that great (and one could add, why 5.6% unemployment rate is not that low either).