Monthly Archives: January 2019
Carbon taxes and the Marginalists’ difficult idea
This Economists' Statements on Carbon Taxes has been signed by a host of prominent economists: Global climate change is a serious problem calling for immediate national action. Guided by sound economic principles, we are united in the following policy recommendations. I. A carbon tax offers the most cost-effective lever to reduce carbon emissions at the […]
Inflation and the Debt/GDP ratio
I'm trying to write a simple explainer. The best way to understand how inflation affects the debt/GDP ratio is to start out with a scenario where it doesn't. Then look at ways in which the real world is not like that scenario. Here's the "No Effect" scenario: The Bank of Canada suddenly decides to raise […]
NAFTA – The “Worst” Trade Deal Ever
With time on my hands over the last week of the holiday season, I spent a bit more time than usual surfing news channels and watched a press conference by U.S. President Donald Trump in which among other things he again reiterated how the United States had been hard done by NAFTA and that it […]
“Are we at full employment yet?”
I vaguely remember having seen this movie before, the earlier British version. And it's a frustrating movie to watch, because nobody knows where full employment is, except maybe when we've driven past it and can see it in the rear-view mirror. And the question itself always gets confused between asking where full employment ought to […]
Are Open Market Operations wrong-signed when nominal rates are negative? (No)
I'm going to start out with a silly unrealistic thought-experiment. Then I'm going to say why I think my silly unrealistic thought-experiment might matter. A central bank issue two types of money: $1 notes; and $100 notes. The two types of money are not perfect substitutes: the $1 notes are convenient for small purchases; the […]
Worthwhile Canadian Initiative 
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