Blog Profile / Worthwhile Canadian Initiative


URL :http://worthwhile.typepad.com/worthwhile_canadian_initi/
Filed Under:Business & Finance / Economics
Posts on Regator:1236
Posts / Week:5.6
Archived Since:April 1, 2011

Blog Post Archive

The Bank of Canada's "stitch in time"

Steve Poloz is good at economics, but not always so good at finding the best metaphor. Greg Quinn says "Bank of Canada Governor Stephen Poloz said his “controversial” decision to cut interest rates in January could be compared to life-saving...

Seigniorage transfers and runs on common currencies

Two identical countries A and B share a common (paper) currency C. The demand for currency is 5% of (Nominal) GDP. Suppose B decides to quit the currency union and print its own currency. There are two different ways it...

Bank walks and options

Why did it takes so long? Currency and deposits are imperfect substitutes. Currency is more convenient for some things, and deposits are more convenient for other things, so many people hold both. If a banking system is working normally, deposits...

Fiscal policy and indifference about the size of government

Suppose I were totally indifferent about the size of government. Because I thought that the government was always equally good (or equally bad) at spending money as private households and firms. And not just at the margin, but everywhere. Never...

The Historical Statistics of Canada Are Back!

If you recall, several posts ago I lamented that the downloadable csv files that used to be part of archived web edition of Historical Statistics of Canada seemed to have disappeared or were not working. I am delighted to say...

Mark Sadowski's correlations deserve a response

They are just simple correlations, but a sample of 34 (split into two groups) beats a sample of the one country the economist just happens to live in. Correlations of data are themselves data, and it is our job to...

Are Technology and Learning joint inputs?

[I started writing this post arguing that they are joint inputs. Now I'm not so sure. So I changed the title into a question.] We need both land and labour to produce wheat, but land and labour are not "joint...

AK/Solow/Smith/Schumpeterian growth

More random musings, mostly to try to get my own head straight on some questions. (I should steal Robert Waldmann's idea of calling them "stochastic thoughts".) And probably not very original. But sometimes it's easier to try to reinvent the...

A New Central Bank Blog

The Bank of England has just launched its own staff blog: Bank Underground. The Managing Editor is John Lewis and the blog is where the staff can air their views as part of the Bank of England becoming more open...

Another rant about Statistics Canada's Attention Deficit Disorder

I've done this before, but I've had a very bad day and I need to vent. I've started work on a forecasting project for the Canadian data, focusing on the short- and medium-term outlook. The first task is to see...

Are apples non-rival?

Suppose we had an apple replicating machine, that could replicate apples costlessly and instantly. How would we go about answering the question: "Are apples a non-rival good?". 1. We could have a lovely philosophical argument about whether the original apple...

Are ideas really non-rival?

I was writing a simple teaching post, on ideas and increasing returns to scale, in micro and macro. I wrote down "ideas are non-rival". Then I thought I had better explain what I meant by that. Then I thought about...

Mathiness and Growth theory

Paul Romer says: "No model can have a competitive equilibrium with price-taking behavior and partially excludable nonrival goods. If you are not an economist, this would be a model in which someone who has a monopoly on an idea can....

Great Recession Versus Great Depression for Canada

With all the doom and gloom with respect to slowing Canadian economic growth and talk of secular stagnation, it is useful to look at a comparison between the last few years in Canada with what transpired during the Great Depression....

Another tiny money/macro model for microeconomists

With monetary exchange, and both recessions and booms. This one is based on Nick Edmond's model. You can think of it as a cross between my previous model and what Paul Krugman calls "The World's Smallest Macro Model" (pdf). This...

I need a 3D symmetric Edgeworth box to explain money/macro

OK microeconomists, here's some money/macro for you. I want a very simple model. The model will be extremely unrealistic. It won't look anything like the real world. But it will help me explain one very important fact about the real...

Back propagation induction does not work under inflation targeting

Suppose you lived in a world where, whenever the price level fell/rose by 1%, the central bank responded by decreasing/increasing the base money stock by the same 1%. A world like that would not have a long-run Omega point, from...

What Happened to Historical Statistics of Canada?

For whatever reason, Statistics Canada has changed the nature of the access to its web version of Historical Statistics of Canada. Until recently, the electronic version of this classic work of data (with paper editions published in 1965 and 1983)...

Econometric estimates of fiscal policy multipliers

New Keynesian macroeconomics says that a (temporary) increase in government spending will cause an increase in the natural real interest rate. And unless the central bank increases the actual real interest rate by an equal amount, the result will be...

Fact Check: Bias at the CEA?

This was written by Trevor Tombe of the University of Calgary. In a recent Financial Post opinion piece by Phillip Cross (entitled “Discounting Business Knowledge” HERE), he finds the Annual Meeting of the Canadian Economics Association guilty of bias. Allow...

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