A working paper exploring the idea that information equilibrium is a general principle for understanding the micro- and macroeconomic allocation problem. [Here] is an overview.
Friday, April 1, 2016
Growth state diagrams
I wanted to show the plausibility of these "growth state diagrams" (here, here, here or here):
... using real data. Therefore I grabbed some CPI component data (as a proxy for growth) and plotted the histogram of CPI component inflation rates over time (past 10 years) in an animation (data from here):