- I'm not sure anybody thought supply stopped mattering.
- I'm not sure how the low employment to population is not "the real story" in the economy. I mean you could have other stories but that seems like a reallyreallyreally huge one!
- I'm not sure how it's "plausible" that we're at full employment. I'm perfectly happy to acknowledge changes in the NAIRU, but remember that the NAIRU is kind of funny at low inflation rates.
- Ryan is offers us research from Econ Journal Watch on the impact of unemployment insurance. My understanding from Jess Rothstein was that the supply side effects were on the order of 0.1-0.5 percent, and from the CBO (and they use the literature), that the mutliplier estimate (i.e. - the total effect) was 1.6. Ryan seems to trust that Econ Journal Watch study, though.
Ultimately we are going to be drifting into the long-run, that much is true. In fact I hope very much that I will live out the rest of my life without paying all that much mind to short-run macro again (focusing instead on labor economics, policy evaluation, growth theory, and a little history of economic thought when I get the time). But this post still has a little too much crazy in it for me.