Blog Profile / Worthwhile Canadian Initiative


URL :http://worthwhile.typepad.com/worthwhile_canadian_initi/
Filed Under:Business & Finance / Economics
Posts on Regator:1377
Posts / Week:5
Archived Since:April 1, 2011

Blog Post Archive

Some Simple Basic Money, for Finance People

Finance people are good people. Economics needs finance people. Some of my best friends are finance people. But (you heard that "but" coming), finance people (though there are of course honourable exceptions) just don't seem to get money. I can...

Can sex triumph over patriarchy?

The way women and men spend their time has changed profoundly over the past century. Women in the developed and, to some extent, the developing world are spending much less time in unpaid household work, especially in tasks like cooking,...

What's wrong with Airbnb?

Airbnb undermines the distinction between short-term, "hotel", accommodation and and long-term, "apartment" accommodation. Some people seem to figure this is a bad thing. New York State legislators, for example, have passed legislation imposing heavy fines on anyone listing their entire...

Central Bank Coordination as BS; Targets vs Instruments.

Imagine you are at an international policy conference. Someone says "Central Banks need to coordinate their monetary policies better". You nod your head wisely in agreement, along with everyone else. Because you know that what one central bank does affects...

Canada Pension Plan Memo

To: Generation X, Generation Y and Millennials From: The Baby Boomers Re: Pension Savings Date: June 21, 2016 It has come to our attention that you are not saving sufficiently for your retirement. This does not surprise us. We haven't...

Wage Norm Function vs Stock Price Belief Function

Roger Farmer always has done interesting and different stuff. We need economists like that. But it's risky of course. What I'm trying to do here is articulate something that makes me uneasy about his recent line of macro theorising. Like...

The Irrelevance of Universal Basic Income

The Modigliani Miller Theorem says that a firm's financing policy is irrelevant. It's wrong of course, but it's a good place to start thinking about firms' financing policies. It would be presumptuous to talk about an Irrelevance "Theorem" for Basic...

The Law of Reflux vs Helicopter Money

Let me start out with an extreme (and very silly) assumption, just so I can explain something simply. Assume that the demand for currency does not depend on the price level, nor on real income, nor on interest rates, nor...

On Olivier Blanchard on ISLM and Teaching Intermediate Macro. And my despair.

I read Olivier Blanchard on how to change the ISLM model in response to the recent recession to teach Intermediate Macro better. And I despaired. Not because he says anything daft, but precisely because what he says seems so sensibl...

Bargaining power and the incidence of taxes on high earners in Canada

Today I'm presenting a paper at the meetings of the Canadian Economics Association: "Bargaining power and the incidence of taxes on high earners in Canada." The bottom line is that once you take into account the fact that high earners...

Accounting for central bank profits

Just a simple "teaching" post. There are two different ways of thinking about central bank profits (of doing the accounting). A simple numerical example will illustrate the difference. Assume 2% inflation, and 1% real GDP growth, so Nominal GDP grows...

Helicopter Money is small beer, and normal

Let's do a back-of-the-envelope calculation. Assume a 5% currency/Nominal GDP ratio. Assume the government/central bank wants to use helicopter money to permanently raise the level of NGDP by 5% above what it would otherwise be. So the stock of currency...

Health Spending Numbers: An Update on the Long-Term

It is of course useful from time to time to take a look at the longer-term picture when it comes to health spending especially given that there is a slowdown in health expenditure growth. Figure 1 plots per capita total...

The challenge: Find an example where ethnicity or culture matters in regulatory policy

Today I was asked by a government policy analyst: "I'm trying to think of an example of a situation when ethnicity or culture matters in regulatory policy. Can you help me out?" Here's my best attempt. I challenge others to...

Gender-Based Analysis: A Guide for Economists

GBA+ [Gender-Based Analysis plus] is an analytical tool used to assess the potential impacts of policies, programs, services, and other initiatives on diverse groups of women and men, taking into account gender and other identity factors. The "plus" in the...

Democratic Helicopter Money and the non-observance of two counterfactual conditionals

I give my kids $100 and tell them to spend it not save it. 1. How can I tell whether my kids have really spent $100 more than they otherwise would have spent? Maybe they would have spent $100 anyway....

Adding more periods to the Diamond Dybvig Model; fear of illiquidity not insolvency

David Andolfatto has a very good post on "Monetary Policy Implications of Blockchain Technology". In passing (it's not a central point of his post), David says: "However, it's worth pointing out that the leading economic theory of bank sector fragility,...

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....

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