ARNOLD KLING
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The Top Political Contributors
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Gender and the New Commanding Heights
August 11, 2011
Jamie Galbraith Makes an Assumption
August 11, 2011
Macroeconometrics: The Science of Hubris
August 10, 2011
Real and Nominal Bond Yields
BRYAN CAPLAN
August 14, 2011
The Effect of Thumb Sucking on Income
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The Voice of Cold, Hard Truth to All Would-Be Educators
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Ability, Morality, and Prosperity: A Paper and a Report
August 11, 2011
The Theory of Time and Frittering
August 10, 2011
Male Variance and the Remnants of the Gender Gap
DAVID HENDERSON
August 9, 2011
Hayek in "Unbroken", Part Two
August 8, 2011
Hayek in "Unbroken"
August 5, 2011
James Bovard on the Peace Corps
August 4, 2011
Summers Way Off on FDR and 1941
August 3, 2011
The "Amazon" Tax
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You point out that in spite of troubles in the financial sector the unemployment rate is only 6.1%, which is pretty average. This strikes me as an odd way to estimate the impact of failures in finance on the broader economy.
If the finance sector is partially crippled, my understanding is that this would decrease employment primarily because businesses would have difficulty obtaining loans for good projects. Thus, it seems that the employment rate would be a lagging indicator of the impact of finance problems. Wouldn't it be better to look directly at how these troubles are affecting the availability and price of credit? Or am I missing something?