Monthly Archives: November 2011
General Gluts, Secular Stagnation and the World Economy
The head of the International Monetary Fund warned today on her visit to Beijing that the global economy faces the risk of a "lost decade" with little or no growth and that without action, the world faces worsening financial instability and a possible collapse of demand. This news item also coincided with my morning lecture […]
What’s the best shape for the AD curve?
Economists usually talk as if the slope of the Aggregate Demand curve were a positive question: what is the slope of the AD curve? I think it's best to treat it as a normative question: what slope of the AD curve ought the central bank choose? That leads us to a simple way to think […]
Should spelling and grammar count?
I'm spending my weekend marking exams and papers. As always, I have to decide, "Should I take off marks for spelling mistakes and grammatical errors?" Grades are a measure of a student's abilities, skills, and knowledge. They are used by admission committees in deciding a student's potential for graduate work (a master's degree, or law […]
Dealing with the Debt Crisis: A Greek Maneuver?
It has been a dizzying week around the world as fears of Greek debt default lead to yet another roller-coaster ride on world stock markets after Papandreou called for a domestic referendum on the European led rescue plan.
Existentialism and the non-neutrality of money language
OK, this post is a little on the whimsical side. The argument is a lot less strong and clear than I would like it to be. But sometimes you just have to say what's in your head, and hope that will help it get clearer. Read at your own risk (as if that needed saying). […]
Canada’s redistribution policy: take from the rich, give to the … median?
Much of the public debate on income inequality focuses on what is happening with market incomes. But most people generally accept that a certain level of inequality in market incomes is inevitable, and indeed necessary in order to provide the sort of incentives that generate economic growth. What really matters is inequality of income net […]
The legal scope of Fed purchases
This is a guest post by JP Koning: Any central bank that wants to be Chuck Norris-like requires the legal authority to purchase a broad array and quantity of assets. Without the legal ability to conduct broad purchases, a central bank’s threat to enforce a new target will lack credibility. The Federal Reserve Act significantly […]
IT vs PLPT vs NGDPLPT for the Bank of Canada
The Bank of Canada's 2% inflation target comes up for renewal every five years, and it's up for renewal now. To my mind, there are only three serious candidates: IT. Inflation Target. Keep the existing 2% Inflation Target (with maybe minor amendments). PLPT. Price Level Path Target. Like inflation targeting, and with the same 2% […]
Reality TV as union busting?
TV writers and actors get paid decent money, because they're unionized. The American Federation of Television and Radio Artists's contract specifies fees for every type of TV appearance. Reality TV stars are not "television and radio artists" and do not need to be paid union rates. Reality television shows can feature non-union performers without violating AFTRA agreements. This […]
Greg Ip on NGDP targeting
Greg Ip (once one of our Carleton students, I'm proud to say) is not opposed to NGDP level path targeting. But he is not very enthusiastic about how well it would work. Greg starts with a US anecdote, about a businessman who told Paul Volcker that he didn't think Volcker would succeed in driving inflation […]
Worthwhile Canadian Initiative 
Recent Comments