I have said a couple times that the IS-LM model is doing a bang up job explaining the current macroeconomy in the US, and the Hicksian Old Keynsians (like Delong and Krugman, famously in the blogosphere) are trouncing the likes of Lucas and Mankiw (not sure where the New Keynesians are in all this -- conflicted?). It's more fun than shooting...
The headline is that median household income, in real dollar terms, has fallen 10% since 2000, with the majority of the fall occurring in the last two years, since the recession ended -- more proof that we are in the Lesser Depression, a period of...
