Monthly Archives: July 2012
A preliminary estimate for Canadian 2012Q2 GDP growth
The May GDP number came out today, so it's time for my quarterly exercise in trying to come up with a preliminary estimate for quarterly GDP growth a month before Statistics Canada makes its first announcement. As regular readers will no doubt be weary of being reminded, the estimate is based on the GDP numbers […]
New Keynesian vs Neo-Wicksellian macroeconomics
I am not going to disagree with Simon Wren-Lewis. There is a lot of merit to his perspective on what New Keynesian macroeconomics is really about. But I want to put forward a very different perspective that I think also has a lot of merit.
Can you please read a first year textbook?
You will recognise yourself from my description. (Or you will recognise others who fit this description). You are probably very smart. You are probably very well-educated — either formally, or self-educated, and probably both. You spend a lot of time on the internet reading economics blogs and commenting on those blogs. You maybe even have […]
The marginal productivity of geniuses: why Apple’s workers earn modest wages
Apple has recently come under fire for the low wages paid to its retail employees, the sales "specialists" and technical support "geniuses." According to a recent New York Times article, Apple is doing something "unique in the annals of retailing". It pays "a modest hourly wage, and no commission, to employees who typically have college […]
Why are (almost all) economists unaware of Milton Friedman’s thermostat?
I know I'm right in saying that Milton Friedman's thermostat is an important idea that all economists ought to be aware of. And I'm pretty sure I'm right in asserting that almost all economists are unaware of this important idea. Am I wrong? Are you aware of this idea? Maybe under some other name?? Google […]
Kill the Euro now?
It's an ugly thing to say, especially since the end of the Euro will be an ugly thing. But it needs to be said. Back in June, Canada came under pressure to help the Eurozone survive, and came under criticism for failing to help (or failing to help enough). Canada's position was defensible on many […]
How many monetary transmission mechanisms are there?
An economic historian builds a macroeconomic model to help her understand the gold standard. Her model says the central bank sets the dollar price of gold, and the stock of base money is demand-determined. If the central bank raises the dollar price of gold, her model says this will cause an increase in the general […]
Game of Premiers: The Premiers, Health & Public Policy
Well, Canada’s premiers and territorial leaders are gathering in Halifax this week engaged in their version of the Game of Thrones with hurt feelings and fiscal uncertainty rather than beheadings, swordplay and pillaging the most likely dire consequences. Among the issues planned for discussion are energy and health care. Not on the official agenda will […]
Behavioural economics and the Lucas critique
There's been a few recent posts on the Lucas critique in the economics blogosphere (ex: Noahpinion), so I'm going to take advantage of this to make a point that I don't recall seeing made elsewhere. (If I'm re-inventing the wheel here, please let me know in the comments and I'll add the appopriate attribution.) A […]
Worrying about the Canadian housing market, Part 3: Risks of default
Concerns about the housing market are not really about what happens to the market for houses per se; its role as a driving force for the recovery was done long ago. The real concern is the risk is a US-style financial crisis. I think it's a valid concern, but I don't think it's very likely. UWO's […]
Worthwhile Canadian Initiative 
Recent Comments