Blog Profile / EconLog

Filed Under:Business & Finance / Economics
Posts on Regator:6193
Posts / Week:12.9
Archived Since:March 2, 2008

Blog Post Archive

Avoid procyclical inflation

(April 14, 2017 10:35 AM, by Scott Sumner) A recent paper by Michael T. Kiley and John M. Roberts (both of the Federal Reserve Board) looks at option for improving monetary policy in light of the zero bound problem: Nominal interest rates may remain substantially below the averages... (3 COMMENTS)

The public only thinks it likes low inflation

(April 13, 2017 02:59 PM, by Scott Sumner) Polls show that the public thinks it likes low inflation. But it doesn't. Thinking you like low inflation is reasoning from a price change, which is almost always a bad idea. Thus we should be very skeptical when the public... (0 COMMENTS)

Markets, Morals, and United Flight 3411

(April 13, 2017 12:08 PM, by Contributing Guest) by Steven Horwitz Presumably most readers are now broadly familiar with the recent incident on United flight 3411 from Chicago to Louisville. The short version is that the operator, Republic Airlines which is a United regional carrier, needed four... (0 COMMENTS)

1470 Economists Say Immigration is Good for Us

(April 12, 2017 11:57 PM, by David Henderson) We view the benefits of immigration as myriad: Immigration brings entrepreneurs who start new businesses that hire American workers. Immigration brings young workers who help o set the large-scale retirement of baby boomers. Immigration brings diverse skill sets that keep... (0 COMMENTS)

The Undermotivated Apostate: Two Post-Libertarian Case Studies

(April 12, 2017 02:26 PM, by Bryan Caplan) Political irrationality is ubiquitous. Most people irrationally cling to their political views; most of the rest irrationally revise their political views. This includes, of course, my fellow libertarians. I know plenty of unreasonable libertarians, but I also know plenty... (0 COMMENTS)

What housing supply glut?

(April 12, 2017 11:06 AM, by Scott Sumner) Kevin Erdmann's blog has made me much more aware of the very strange way we look at housing. Here's an example from the Financial Times: More than a million new apartments have sprung up across the US in a post-crisis... (0 COMMENTS)

The Undermotivated Apostate

(April 11, 2017 09:53 AM, by Bryan Caplan) People rarely revise their beliefs on issues they care about. Even when confronted with strong counter-evidence, they usually manage to weasel out somehow. When you encounter someone who has revised his beliefs, therefore, it's tempting to conclude that he's highly... (0 COMMENTS)

Murphy and Smith on NGDP and politics

(April 11, 2017 10:16 AM, by Scott Sumner) Ryan Murphy has a post discussing a paper he wrote with Taylor Leland Smith, testing my claim that sharp NGDP declines lead to governments with statist polices: In a forthcoming paper at Review of Austrian Economics, co-authored with Taylor Leland... (0 COMMENTS)

A Keynesian Conundrum

(April 10, 2017 01:44 PM, by Bryan Caplan) This year, I'm prepping my 8th-grade homeschoolers for the Advanced Placement tests in European History, Microeconomics, and Macroeconomics. The Macro test is less Keynesian than it used to be, but its Keynesian origin remains blatant. And after years away from... (5 COMMENTS)

Supply and demand both matter

(April 9, 2017 11:34 AM, by Scott Sumner) There's an unfortunate tendency for economists to align themselves into "supply-side" and "demand-side" camps. Many conservatives in Europe denied that the ECB's tight money policy caused a double-dip recession, leading to a dramatic rise in unemployment between 2008 and 2013.... (0 COMMENTS)

Might Trump actually end up promoting liberalism?

(April 8, 2017 11:12 AM, by Scott Sumner) I suppose the title to this post sounds like wishful thinking. And perhaps it is. Nonetheless, I am seeing increasing signs that Trump's unpopularity may be tending to discredit some of his policy ideas. Here's The Economist: EU deals with... (8 COMMENTS)

A little bit of knowledge is a dangerous thing

(April 7, 2017 01:40 AM, by Scott Sumner) I'm starting to clean out my office, and I keep finding interesting old articles that I clipped out of the newspaper. Some of the stuff from 2008 and 2009 is absolutely mind-blowing. Here's a January 31st, 2009 article from The... (3 COMMENTS)

Scott Alexander's Self-Evaluations

(April 6, 2017 02:08 PM, by Bryan Caplan) I just learned that blogger Scott Alexander starts ends the year by scoring the accuracy of his numerous annual predictions: here are the results for 2014, 2015, and 2016. Since he assigns probabilities to each prediction, Scott can graph his... (7 COMMENTS)

Henderson and Hooper on Flawed Climate Models

(April 6, 2017 12:28 PM, by David Henderson) If someone with a hand-held stopwatch tells you that a runner cut his time by 0.00005 seconds, you should be skeptical. If someone with a climate model tells you that a 0.036 Wm-2 CO2 signal can be detected within an... (10 COMMENTS)

FDR Understood that Incentives and Property Rights Matter

(April 5, 2017 01:38 PM, by David Henderson) In the 1936 election, Roosevelt claimed that 85 percent of the newspapers were against him. In the standard work on the subject, historian Graham J. White finds that the actual percentage was much lower and the print press generally... (0 COMMENTS)

What were the "costs and risks" of QE?

(April 5, 2017 08:36 AM, by Scott Sumner) One of the puzzles of the Great Recession is why the Fed did not move more aggressively to promote recovery in NGDP growth and/or inflation. Many observers, including Christina Romer and Lawrence Ball, noted that the Fed's passivity seemed to... (2 COMMENTS)

The Big Problem with the Ultimatum Game

(April 4, 2017 03:30 PM, by David Henderson) I'm enjoying some reading for a conference I'm going to later this week. Two of the readings are by Matt Ridley. I loved the first; I don't love the second. Here's a quote about the Ultimatum Game from the second... (0 COMMENTS)

What's Wrong With the Rationality Community

(April 4, 2017 02:10 PM, by Bryan Caplan) I disagreed with most of what Tyler Cowen said in his recent interview with Ezra Klein, but this part launched a vociferous internal monologue:Ezra Klein The rationality community. Tyler Cowen Well, tell me a little more what you mean. You... (0 COMMENTS)

Education, Politics, and Peers

(April 3, 2017 01:17 PM, by Bryan Caplan) From The Case of Education. Written pre-Trump. Abundant research confirms education raises support for civil liberties and tolerance, and reduces racism and sexism.[1] These effects are only partly artifactual. Correcting for intelligence cuts education's impact by about a third.[2] Correcting... (0 COMMENTS)

The Economics of Political Balderdash

(April 3, 2017 11:24 AM, by David Henderson) It would not be a satisfactory economic explanation to simply hypothesize that Trump is an idiot in the sense of being cognitively impaired. As David Friedman reminds us, it is better to assume that Trump--or any other politician--is a... (0 COMMENTS)

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