Author Archives: wciecon
Permanent productivity differentials and Optimal Currency Areas
Many good economists, like Simon Johnson and Paul Krugman for example, have said something about permanent productivity differentials and optimal currency areas I simply do not understand. (Lots of other people say the same thing, but when good economists say it and I don't understand it I get worried.) Maybe they are making some implicit […]
Jobs, inflation, expectations, and causation.
Matt Yglesias says that "Inflation doesn't create jobs, jobs create inflation". Well, yes and no. Both. Neither. It's simultaneous causation. It's a non-linear story, in the Artsie sense of "non-linear". And don't forget expectations. When we add in expectations, the story becomes very non-linear. Here's a simple plot summary. (OK, it's not at all simple, […]
What’s a “country”?
Take any country. Or rather, take any normal country, with its own currency. Suppose some people in that country are less "productive" (defined however you want) than other people in that country. That's normal. Now let's call the less productive people "Greeks" and the more productive people "Germans". Does calling them different names suddenly cause […]
Working on Claim in a Low Wage Economy
People value time – and money. There is a trade-off: to get more money, a person must spend less time on other things – child care or home repairs, making cinnamon buns or swimming in Meech Lake, playing Call of Duty or Tetris. In the absence of income support programs, or help from family and […]
How do the French control the size of the Sun? Hume vs Patinkin.
How do the French control the size of the Sun? How does the Fed control the size of the US economy? More importantly, how are those two questions related? [I'm still thinking about this, but have decided to post it anyway.] There is a metal rod in Paris that defines the length of the metre. […]
About WCI
As you can see, Stephen is revamping the WCI design. We're adding an 'about WCI' page. What I've drafted is below the fold. Comments welcome.
Competition matters, not ownership.
A Montréal-Toronto ticket on the Greyhound bus costs $30, advance fare. An Ottawa-Toronto ticket costs $49 (no advance fare is available). Since the Montréal-Toronto bus stops in Ottawa, savvy customers buy a Montréal-Toronto ticket, and just hop on the bus in Ottawa, saving themselves $20. Why does the bus ride from Montréal to Toronto cost […]
What were they thinking?
One of the best lines I heard at this year's CEA meetings was delivered by Chris Ragan, at a session on the Euro organized by Paul Jenkins.
Coming Soon to a University Near You…H-Index Rankings
Most of us are familiar with the metric known as the h-Index. Developed by Jorge Hirsch, the h-index is a measure that says that if you have an index of h, you have published h papers each of which has been cited at least h times.
The theft-proof bicycle helmet
I figured my bicycle helmet would never get stolen. Helmets, by offering protection in the event of an accident, appeal to those who are averse to risk, who worry about bad things happening. Thieves love risk, or are at least indifferent to it, as evidenced by the fact that they engage in risky behaviour like […]
Worthwhile Canadian Initiative 
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