3. Extending unemployment benefits did increase joblessness, and the paper is here (pdf).
4. What really went wrong with the microfoundations of macroeconomics? Chris House writes: “The main thing New Keynesian research has been devoted to for the past 20 years is an exhaustive study of price rigidity. If anything was holding us back it was the extraordinary devotion of our energy and attention to the study of nominal rigidities. We now know more about the details of price setting than any other field in economics. As financial markets were melting down in 2008, many of us were regretting that allocation of our attention. We really needed a more refined empirical and theoretical understanding of how financial markets did or did not work.”
5. Chopin’s Heart.