Persisting high unemployment and income inequality are two serious problems in global macroeconomic management. This paper sets out to explore the possible connection behind the co-existence of the two problems with an empirical study of the US from 1941-2010. Using the wage share in aggregate...

This paper proposes a macro function of investment to capture the key determinants and explore the mechanism of the determination of aggregate investment. The long-established empirical findings in the field are that investment and output are strongly correlated while costs of capital have...

The topic of asset price bubbles is one of the most challenging issues facing modern central banks, yet the economics profession has not been able to work out a convincing method for identifying bubbles at an early stage and in real time. The relevant researches are either trapped in the dispute...

Currently the hottest two domestic macroeconomic issues in the United States are the dynamics of the federal funds rate (FFR) and the deterioration of income inequality. Amid the great uncertainty over the FFR, this paper attempts to predict where the FFR is bound to go in the near and...

The paper builds up a macro function of investment to capture various key determinants and explore the intricate determination mechanism of aggregate investment. It explicates the basic trend determinant of investment, locates the cause of investment volatility and identifies the magnifier of...