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Blog Profile / Worthwhile Canadian Initiative


URL :http://worthwhile.typepad.com/worthwhile_canadian_initi/
Filed Under:Business & Finance / Economics
Posts on Regator:1061
Posts / Week:6.1
Archived Since:April 1, 2011

Blog Post Archive

How big has the effect of increases in the minimum wage been on youth employment?

One of the more puzzling features of the Canadian labour market in the last few years recovery has been the stubborn refusal of youth employment rates to recover from the recession: There may a relatively simple (partial) explanation. This is...

A New Policy Think Tank

Well, there is a new policy think tank in Canada and they have just released a commentary on the minimum wage. The Northern Policy Institute began operations over the last year (I am a member of the Research Advisory Board)...

When is helicopter money optimal?

Money is fungible. And things get lost in translation, especially between micro and macro. "Helicopter money" is when the central bank prints money, gives it to the government, and the government gives it to everyone, as a freebie. When is...

On not quite getting Lloyd Metzler

30 years ago, IIRC, my colleague Steve Ferris said I should read Lloyd Metzler's Wealth, Saving, and the Rate of Interest, because he thought it was a great paper. Yesterday Brad DeLong said the same thing. David Glasner also thinks...

The continuum from monetary to fiscal

Simon Wren-Lewis says (in response to right-deviationist David Beckworth): "Now this does not mean that Market Monetarists and New Keynesians suddenly agree about everything. A key difference is that for David this [fiscal policy at the ZLB] is an insurance...

Three growth stages of the New Keynesian model

This is very very crude. It's something off the top of my head scribbled on a scrap of paper as an outline for a first draft. But I will never go beyond that outline, because I wouldn't be any good...

New Keynesian neo-fiscalists for increasing austerity

I was off at the cottage when Simon Wren-Lewis and Paul Krugman responded to my post on neo-fiscalism. Amusingly, given Simon's metaphor, the handbrake on the MX6 seized on as I was driving, slowing me down and creating a nasty...

We Are Not Slower, Just More Erratic: Comparing Growth in Canada and the United States

The existence of a productivity gap between Canada and the United States should ultimately manifest itself in terms of the growth rate of real per capita GDP. If productivity growth in Canada is consistently below that of the United States,...

Learning about theory does not teach people how to theorize

A random question from a Stanford University PhD micro exam looks something like this: The "Robinson Crusoe economy" is the simplest possible general equilibrium model, and students who can solve for Crusoe's leisure and coconut consumption choices have presumably learned...

Legislated Taylor Rules again

This is in response to the post (and associated paper pdf) by Alex Nikolsko-Rzhevskyy, David Papell, and Ruksandra Prodan (hereafter NPP) arguing for a legislated Taylor Rule in the US. A central bank reaction function tells us how the central...

The Real Minimum Wage

I was a bit surprised that the recent upsurge in unemployment in Ontario in June, which was especially concentrated amongst youth (individuals aged 15 to 24 years), did not generate much discussion about the impact of the minimum wage. Ontario’s...

Why do unions bargain for health benefits?

Unionized workers are more likely to have health insurance and other non-wage benefits than non-union workers (for US evidence see here or here (gated)). Yet it is not clear why. Some obvious explanations do not stand up to scrutiny: 1....

Unemployment, aggregate demand, and search/matching

For what it's worth, I thought I would lay out my own views, after reading John Quiggin and Noah Smith. This is what I think: 1. Fluctuations in the unemployment rate from year to year are mostly caused by fluctuations...

Some simple arithmetic for mistakes with Taylor Rules

Sometimes I think that US monetary policy is too important to be left to the Americans. If you see your neighbour thinking of doing something daft, apparently unaware of one of the problems, you ought to speak up. Especially if...

Ontario Employment: Yours to Discover

Well, the latest Statistics Canada Labour Force Survey numbers paint a rather bleak picture for Ontario with employment dropping by 34,000 jobs and the unemployment rate rising from 7.3 to 7.5 percent. However, Ontario’s employment picture is much more complicated...

A simple test of simple rules against actual policy in the actual economy

A "simple rule" is a formula that tells a central bank how to set the nominal interest rate as a fixed function of a small number of variables. The Taylor Rule, which sets the nominal rate as a function of...

Employment and Investment: the great Canadian disconnect

[This is a guest post by Hashmat Khan of Carleton University and Nyamekye Asare of the University of Ottawa.] Can policies stimulating private investment deliver higher employment? Maybe, but investment and employment have become disconnected recently in Canada. John Taylor...

Visualizing the Economy

I will be teaching first year economics this fall for the first time in quite a number of years and I want to provide a more gripping visual presentation of what an economy is. I have the standard set of...

Insufficient Demand vs?? Uncertainty

It's a false dichotomy. Just a quickie, in response to Noah Smith and John Cochrane. John Cochrane says: "John Taylor, Stanford's Nick Bloom and Chicago Booth's Steve Davis see the uncertainty induced by seat-of-the-pants policy at fault. Who wants to...

Neofiscalist delusions?

It seems I need to respond to Paul Krugman. "The neomonetarist movement starts from an acknowledgement of reality: shortfalls of aggregate demand do happen, and they do matter, and we need an answer. Like the original monetarists, however, they reject...

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