Blog Profile / Worthwhile Canadian Initiative


URL :http://worthwhile.typepad.com/worthwhile_canadian_initi/
Filed Under:Business & Finance / Economics
Posts on Regator:1498
Posts / Week:4.3
Archived Since:April 1, 2011

Blog Post Archive

Rip van Winkle on Price Level vs Inflation Targets

Rip van Winkle is put in charge of a New Keynesian central bank. He sets a nominal interest rate that he believes will keep inflation at 0% and the price level constant. (It doesn't matter if I change this to...

Provincial Government Health Spending: The Force Awakens?

The Canadian Institute for Health Information (CIHI) recently released its 2017 edition of its National Health Expenditure Trends and its worth a trip to its website for the downloadable data on all things related to health spending. I've been on...

Price-level targeting as an automatic stabiliser for inflation

Targeting the price level could mean lower variation of inflation than targeting inflation. The best way to target inflation might be to target the price level instead. It's one of those paradoxes of pre-commitment. A promise to do something you...

Capital flows vs Kapital flows (simpler version)

Let me try to make the intuition of my previous post simpler and clearer. Suppose a country wants to invest more, because the profitability of investment has increased. It wants to increase the stock of kapital (machines) in its factories....

Capital flows vs Kapital flows (very wonky)

This is only partly a response to Paul Krugman's posts. Mostly it's me trying to get my own head clear on something. This is a difficult topic, and this post is not as clear as it should be. So I...

How can Halloween get started?

A day late, but whatever. It's easy to understand how money might get started. A non-smoker accepts cigarettes(pdf) he doesn't want in exchange for the jam he doesn't want. Then finds a smoker who will accept those cigarettes in exchange...

How much more can governments spend by switching to a debt ratio target?

In my recent National Post column, I make reference to some back-of-envelope calculations to the effect that replacing the fiscal anchor of balanced budgets to one of a fixed debt-GDP ratio allows the federal government to increase spending by 1.2...

If r < g, bond-finance is like currency-finance

A world where the interest rate on government bonds is (permanently) less than the growth rate of GDP ("r

So, what are the differences between a Government's Budget and a Household's Budget?

You've probably seen examples. Some poor non-economist says something like: "Governments, like households, must live within their means". And economists all point their fingers and laugh and say that's a fallacy. So, what are the differences between a government's budget...

Soldiers of Fortune goes to Hollywood

There are six identical men, who must choose one of them to do an unpleasant job. They could hold an auction and pay one of them to volunteer to do the job. But if they have diminishing marginal utility of...

Regional disparities in Canadian economic growth: Theory and evidence

In its recent release of income data from the 2015 census, Statistics Canada helpfully provided data tables for median incomes in 2005 and 2015 for various regions in Canada. The headline number was the 12.7% increase in median Canadian incomes,...

The Devil You Know vs The Market For Lemons

I told my friend Mike I was thinking of trading my car in for one that used less gas. Nowadays I would talk about the Market for Lemons as a reason against doing what I was thinking of doing. But...

Health Spending and System Characteristics in Canada and Spain

I gave a talk at Memorial University in Newfoundland & Labrador last week sponsored by the Department of Economics and the Collaborative Allied Research in Economics Initiative (CARE). My talk was based on joint research currently underway with David Cantarero...

Two Ways Central Banks can do Monetary Policy even if Bitcoin totally replaces Dollars as Medium of Exchange

Just a quickie, in response to Benjamin Vitaris' article about Warren E. Weber's Bank of Canada Working Paper (pdf) (HT Tony Yates on Twitter). Suppose that Bitcoin totally replaces the Canadian Dollar (and every other currency) as medium of exchange....

Central Bank Communication and the Term Structure

It's a choice between being surprised by immediate small changes, and being surprised by warnings of much bigger future changes. A simple and maybe obvious point. I don't know if it's been made before; if not, it should have been......

Migration, Wages, and Corner Solutions

I'm trying to get my head straight on something. Macro farmboy lost in Urban Economics again. Read at your own risk. If immigration always increases real wages (or well-being), do we end up in a "corner solution", where everyone bunches...

Looking for a University President

“Some people think that a college president’s life is full of joys and a host of friends. I know that he frequently walks in sorrow and alone because of the times he must do what seems impossible.” Paul V. Sangren...

The exchange rate and net exports "contribution" to growth

This post is about national income accounting, and its dangers. Reading Simon Wren-Lewis' post about Brexit and real wages made me finally decide to try to get my head clear about something I've been meaning to get it clear about...

Thinking about Costs and Benefits of Immigration

I find this a useful way to organise my thoughts about the costs and benefits of immigration. It may work for you too. I start out with a neutral benchmark, where immigration has neither costs nor benefits for the original...

Balancing Ontario's Budget...In 1875

We often long for simpler times and search for them in our not so distant past. As an economist that does public finance and economic history, the public accounts of the past can offer me an interesting diversion. Governments, at...

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