Category Nick Rowe
Centre for Monetary and Financial Economics Conference at Carleton
This is where I will be today and tomorrow: "Economic and Financial Crisis: Lessons from the Past, and Reforms for the Future". I will see how much sinks into my brain, and probably post about it on the weekend.
Fiscal Federalism revisited
A French, German, and Canadian student were asked to write an essay on elephants……And the Canadian student titled his essay "Elephants: a Federal or Provincial responsibility?" The Eurozone is what Canada would be if we abolished the Federal government, leaving only the Bank of Canada. The 16 Eurozone countries are the 10 Canadian provinces. Americans […]
Julie Dixon’s alternative to the bank tax
Stephen has already posted on Canada's opposition to the proposed international bank tax. I agree with his main point. There is no way Canadian banks (and their customers and workers, who bear the incidence of that tax) should be paying for failures of other countries' banks, regulated (or not) by other countries' regulators. That just […]
The Eurozone lender of last resort?
OK. Let's simplify this whole Eurozone mess. Central banks do two things:
The optimal destruction of wolves
This post is not about wolves. Sorry. You are an armed shepherd guarding 16 sheep against circling wolves. There are more wolves than you have bullets. It takes ki wolves to kill one sheep, where ki is the strength of sheep i. The number of wolves is greater than SUM{ki}, so they could kill all […]
Negative and Positive sovereign debt feedback loops
There are two sorts of countries: countries that can print money to pay their sovereign debts; and countries that can't. Canada is a printer; Greece is a non-printer. Both sorts of countries can get into trouble if they issue too much sovereign debt; but they get into very different types of trouble. Printers get into […]
Units
Nothing really new here (for most economists). Just the old story re-told. Back in high school, I figured out something neat about units. Both sides of an equation had to have the same units. Obvious now, but I thought it was neat, because it let me "cheat" on exams. If I was too lazy to […]
A question for Modern Monetary Theorists
What, in your opinion, is the shape of the Long Run Phillips Curve? Supplementary: if you use the words "full-employment" in your answer, can you do your best to explain what you mean by this. (This is not a "gotcha!" question. I know that's a tall order, because it's not always easy to come up […]
The Euro money supply
I agree with Ambrose Evans-Pritchard and Jacques Cailloux. It's what I was trying to say yesterday. And on Thursday. It's probably gotten too big for Germany, France, the IMF, whoever, to fix. Only the European Central Bank has enough money to fix the Eurozone problem; because it can print it. What's ironic is that what […]
The Holy Roman Eurozone
I started writing this post yesterday. It's already out of date. This is what I wrote yesterday; I will continue the post below. Greece has now gone, at least in expected value terms. With bond yields increased to over 13% today, there is no way I can see Greece running a primary surplus big enough […]
Worthwhile Canadian Initiative 
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