Blog Profile / Worthwhile Canadian Initiative


URL :http://worthwhile.typepad.com/worthwhile_canadian_initi/
Filed Under:Business & Finance / Economics
Posts on Regator:1361
Posts / Week:5.1
Archived Since:April 1, 2011

Blog Post Archive

Fewer Fiscal Multipliers and more Clarity from the Bank of Canada

At the risk of being thought "cavalier", I don't like what Bank of Canada governor Stephen Poloz is reported as saying by Kevin Carmichael. Inflation targeting is supposed to be inflation forecast targeting. The Bank of Canada is supposed to...

Fiscal Balance and Unemployment

As we all know, Canada will be running deficits well into the foreseeable future. Based on the figures from the 2016 Federal Budget, as a percentage of GDP Canada will see its deficit go from a surplus of 0.1% in...

Neo-Fisherian Microfoundations, with non-binding price ceiling and floor

I read Steve Williamson's new post. I could try and poke holes in his modelling. But it would be pointless, like a high-school debate. The disagreement is much more fundamental. I hope this is more constructive. Inflation doesn't just happen....

On Central Bank Lending to Government

The central bank prints money, lends it to the government, and the government sooner or later spends it (or uses it to cut taxes or increase transfer payments). There seem to me to be two views on this question that...

Two Problems with Designing a Basic Income Experiment

WARNING: I don't do (micro) Public Finance. And I don't do experimental economics. Those who have read the literature may tell me they are well aware of these problems, or that I'm wrong about something. Suppose someone asked me to....

Helicopter Bonds as Qualitative Easing

Accounting can be fun. Helicopter Bonds is when the government prints some bonds and drops them out of a helicopter, so whoever picks up the bonds now owns them. It's identical to a bond-financed lump-sum transfer payment. It's identical to...

Helicopter Money is Permanent

The shocks in a random walk process are permanent. That does not mean it is impossible for a positive shock to be followed by a negative shock. It does mean it is equally likely that a positive shock will be...

The Neo-Fisherian Counterfeiter

Just a thought-experiment that's been running through my head. You are a saver and lender. You take some of the money you have earned as income, that you don't want to spend yourself, and lend it to people who want...

What is Employment Insurance For?

If Canada's Employment Insurance program was designed solely to insure workers against the loss of employment, it would look very different. For one thing, the premiums that employees and employers contribute would go towards paying benefits to people who have...

How Vancouver Escaped the Freeway Curse

In the 1950s, Vancouver began to feel the pain of traffic congestion. The travel time contour map below, taken from the 1958 study Freeways With Rapid Transit, shows how bad it was. In rush hour it took a 15 minutes...

Economics can't be encapsulated into knowledge pills. And that matters for research funding.

Antibiotics - when they work - are miraculous. A patient does not have to understand what antibiotics are, or why antibiotics are effective. All that is required is for someone somewhere in the world to create an effective antibiotic and...

Conceptually costing Basic Income

Micro public finance is not my area, so take this post with a big heap of salt. But: Q. How much would it cost to implement a Basic Income, where everyone gets (say) $10,000 per year? The normal way to...

Federal Budget 2016: Quick Comment

Well it is Budget Day in Canada! Today’s federal budget is designed to address Canada’s uncertain economy by running large deficits to stimulate spending. Interestingly enough, the spending is somewhat more skewed towards people rather than things (infrastructure) which probably...

Chartalism and stock-flow consistency

[A post for Alex Douglas.] Here are two closely related questions, about Chartalism and the relation between stocks and flows of money. 1. How can intrinsically worthless bits of paper be a valuable asset that gets used as a medium....

Stag Hunt and The Money Problem

If I were any good at writing book reviews, this post would tell you all about Morgan Ricks' new book "The Money Problem", and would explain why I think it's a very good book. [Disclaimer: I was paid to fly...

It's easier to have a sensible fiscal rule with an NGDP level-path target

It's a simple point, perhaps an obvious point, that only needs a short blog post, but I think it's worth making. The Brits seem to be arguing about whether they should have some sort of rule (or charter) for fiscal...

New Keynesian macro when all output is consumer durables [DRAFT]

Warning: math-challenged economist at play. I want to see if I can sucker any readers into checking my math and doing the rest of the math for me. Do not read this post unless you think that might be fun....

Does saving count towards GDP?

Here's a fun one. (OK, I think it's fun, anyway.) Especially for those who teach macro. A first year student emails me. Paraphrasing, he asks "For a closed economy, we know that national saving equals national investment, and investing in...

ISLM pictures with interest on money

By popular request (well, David Andolfatto asked, but I think he's right to ask) I'm drawing a picture to illustrate my previous post on the distinction between the interest rate Rb you get paid for lending money and the interest...

Interest on holding money vs interest on lending/borrowing money

Prerequisite: intermediate macro. I reckon some people might be getting those two things muddled. The difference matters. Actually, the difference is the only thing that matters. It's the spread between those two interest rates, not the levels of those two...

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