Monthly Archives: March 2012
Is money a liability?
I waved a $20 note in front of my macro class this morning. I said: "Is this a liability of the Bank of Canada?". They all answered "Yes". That's what we teach them. We draw a balance sheet for the Bank of Canada. We put the government bonds it owns on the asset side, and […]
Anke Kessler on the effects of robocalls on voter turnout
One of the (many!) important questions raised by the robocall scandal is whether or not the deceptive calls did in fact achieve their presumed goal of inducing supporters of opposition parties to stay home and not vote. If you look at riding-level data, there's not much to see. But Simon Fraser University's Anke Kessler has […]
How much new revenue will be generated by an increase in federal corporate taxes?
It's budget season, and there's a federal deficit to worry about. The government wants to cut spending, and the opposition parties want to increase taxes on high earners as well as corporate income taxes (CIT) instead. (No-one wants to increase the GST.) In a recent Economy Lab post, I went through the arithmetic of calculating […]
Wanted: power tools for girls
I became a feminist because I wanted to be free: to go for long walks and look up the stars, to wear whatever I wanted, to be able to look after myself and not have to rely on others. I've lived my life in a time and place where I've been able to have those […]
Why Dalton McGuinty Desperately Needs a U.S. Economic Recovery
Recent reports suggest that the federal government may be seeing some improvements on the deficit front due to increases in revenue. However, no such luck seems to be gracing Ontario. Indeed, the Drummond’s report forecast of continued lackluster revenue growth for Ontario due to its weak economy has placed Ontario’s government in a bind.
Do illiquidity and sticky prices go together? If so, why?
Some goods are easy to buy and sell quickly. They are liquid. Other goods are harder to buy and sell quickly. They are illiquid. Some goods' prices adjust quickly to changes in demand and supply. They have flexible prices. Other goods' prices adjust slowly to changes in demand and supply. They have sticky prices. 1. […]
If I had a policy tardis…
Imagine it was possible to travel back in time, and tell the policy makers of the past everything that we now know about pay as you go pension (PAYG) plans. Life expectancies will increase, birth rates will fall, and the contributions required to sustain the schemes will grow. PAYG pensions will be blamed for discouraging savings, […]
Sticky prices vs sticky coordination; inflation vs NGDP targeting
Monetary policy matters (mainly) because of nominal rigidities. The simplest story of nominal rigidities is that (some) prices (or wages) are sticky. Firms want to change prices when a shock hits, but there is some cost that makes it hard for them to do so. The object of monetary policy should then be to target […]
Iceland and the Loonie?
Some people in Iceland want to abandon the Krona and adopt the Loonie. This came as rather a surprise to me. Here are some thoughts off the top of my head:
Does language influence savings?
My latest piece on Economy Lab takes a look at Keith Chen's recent paper on the impact of language on savings.
Worthwhile Canadian Initiative 
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