Labour’s legacy
01 Mar 2024 Leave a comment
in economic growth, economics of bureaucracy, fiscal policy, macroeconomics, politics - New Zealand, Public Choice, public economics
This kind of macro theory is underrated
01 Mar 2024 Leave a comment
in applied price theory, business cycles, fiscal policy, history of economic thought, job search and matching, macroeconomics, monetary economics Tags: real business cycle theory
Demand shocks as technology shocks: We provide a macroeconomic theory where demand for goods has a productive role. A search friction prevents perfect matching between producers and potential customers. Larger demand induces more search, which in turn increases GDP and measured TFP. We embed the product-market friction in a standard neoclassical model and estimate it […]
This kind of macro theory is underrated
How good was Paul Samuelson’s macroeconomics?
25 Feb 2024 Leave a comment
in business cycles, economic history, history of economic thought, macroeconomics, Milton Friedman, monetary economics Tags: monetary policy, wage and price controls
Reading the new Nicholas Wapshott book and also Krugman’s review (NYT) of it, it all seemed a little too rosy to me. So I went back and took a look at Paul Samuelson the macroeconomist. I regret that I cannot report any good news, in fact Samuelson was downright poor — you might say awful […]
How good was Paul Samuelson’s macroeconomics?
Government Intervention and Relative Prices
25 Feb 2024 Leave a comment
in economic history, economics of regulation, entrepreneurship, industrial organisation, macroeconomics
I periodically share Mark Perry’s famous “Chart of the Century” to show that government intervention is a recipe for rising relative prices.* Since economic principles don’t change when you cross national borders, one might expect to see similar patterns in other countries. And we do. Here’s a chart from Matthew Lesh of the Institute for […]
Government Intervention and Relative Prices
Superannuation, KiwiSaver, and New Zealand’s economic development
22 Feb 2024 Leave a comment
in economic growth, income redistribution, labour economics, labour supply, macroeconomics, politics - New Zealand, Public Choice, rentseeking Tags: ageing society
The Retirement Commissioner has released a paper on aspects of New Zealand Superannuation (NZS). Its focus includes affordability, fairness, age of eligibility, and the treatment of those over 65 who continue in the workforce whilst also receiving NZS. What the Commissioner does not discuss is the relationship between superannuation systems, domestic savings rates and capital […]
Superannuation, KiwiSaver, and New Zealand’s economic development
Brian Christopher Jones: Nigel Farage and the UK Constitution
20 Feb 2024 Leave a comment
in constitutional political economy, currency unions, economic history, law and economics, macroeconomics Tags: British constitutional law, British politics, European Union
The upheaval of the UK constitution from 2016 onwards has been associated with a host of individuals, from David Cameron to Boris Johnson to Dominic Cummings, who have received the significant bulk of academic attention in recent years. And yet, another individual has had a substantial impact upon the UK constitution during this time: Nigel […]
Brian Christopher Jones: Nigel Farage and the UK Constitution
Florida’s One-Man Laffer Curve
16 Feb 2024 Leave a comment
in applied price theory, entrepreneurship, fiscal policy, income redistribution, labour economics, labour supply, macroeconomics, Public Choice, public economics Tags: taxation and entrepreneurship, taxation and investment, taxation and labour supply
Inflation is having an effect on everything, even policy analysis. Back in 2013, I wrote that Phil Mickelson was “California’s One-Man Laffer Curve” because he wanted to escape the Golden State to save about $1.2 million per year in taxes. But now, when a goose that lays golden eggs wants to escape, the numbers are […]
Florida’s One-Man Laffer Curve
Global GDP
14 Feb 2024 Leave a comment
in development economics, economic growth, economic history, growth miracles, macroeconomics Tags: The Great Enrichment
Cool chart which is split up by regions so it’s easy to find nations like little old New Zealand ($US 252 billion) and Israel ($539 billion). I was a little surprised at the latter as I thought they’d be much bigger with all the high tech companies they have, as well as having a population […]
Global GDP
T. C. Koopmans Demolishes the Phillips Curve as a Guide to Policy
12 Feb 2024 Leave a comment
in business cycles, econometerics, economic history, history of economic thought, macroeconomics, monetary economics
Nobel Laureate T. C. Koopmans wrote one of the most famous economics articles of the twentieth century, “Measurement Without Theory,” a devastating review of an important, and in many ways useful and meritorious, study of business cycles by two of the fathers of empirical business-cycles research, Arthur F. Burns and Wesley C. Mitchell, Measuring Business […]
T. C. Koopmans Demolishes the Phillips Curve as a Guide to Policy
Charles Moore: The political class is only just realising that voters prefer prosperity over climate jingoism
11 Feb 2024 Leave a comment
in economic growth, economics of bureaucracy, economics of climate change, energy economics, environmental economics, environmentalism, global warming, income redistribution, liberalism, macroeconomics, Marxist economics, Public Choice, rentseeking, technological progress Tags: British politics, climate alarmism, wind power
By Paul Homewood From The Telegraph: Labour’s green U-turn reflects the shifting sands of climate policy If you want to see how the politics of climate change are shifting, compare today with late 2009. In both cases, a general election was approaching. In October 2009, with the Copenhagen climate summit […]
Charles Moore: The political class is only just realising that voters prefer prosperity over climate jingoism
The Great Fact
10 Feb 2024 Leave a comment
in development economics, economic growth, economic history, gender, growth miracles, macroeconomics, poverty and inequality Tags: The Great Enrichment, The Great Fact
What’s the Right Interest Rate for the Fed Anyway?
08 Feb 2024 Leave a comment
in business cycles, econometerics, economic growth, inflation targeting, labour economics, macroeconomics, monetary economics, unemployment Tags: monetary policy
Standard models watched by economists at the Federal Reserve and elsewhere suggest that rates should now be lowerBy Justin Lahart of The WSJ. Excerpt:”So where should rates be? There has been a lot of focus recently on the long-term neutral rate—the just-right level of rates for when inflation is at the Fed’s 2% target, and…
What’s the Right Interest Rate for the Fed Anyway?
The Conway speech
08 Feb 2024 Leave a comment
in budget deficits, business cycles, econometerics, economic growth, economic history, economics of bureaucracy, fiscal policy, inflation targeting, labour economics, macroeconomics, monetary economics, politics - New Zealand, Public Choice, unemployment Tags: monetary policy
I’ve been rather tied up with other stuff for the last few weeks (including here) which is why I’ve not previously gotten round to writing about the first piece of monetary policy communications from our Reserve Bank this year. That was the “speech” by the Bank’s chief economist (and MPC) member Paul Conway given to […]
The Conway speech
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