Blog Profile / Worthwhile Canadian Initiative


URL :http://worthwhile.typepad.com/worthwhile_canadian_initi/
Filed Under:Business & Finance / Economics
Posts on Regator:1268
Posts / Week:5.5
Archived Since:April 1, 2011

Blog Post Archive

Making Change?

Alex Usher at Higher Education Strategy Associates had a great post on his One Thought Blog today dealing with policy-making and change. His comparison to policy-making in Ottawa as a slow stately moving river compared to Washington's high-pressure ice jam...

Good shocks, bad shocks, and shocks that cause a monetary coordination failures

Just because a shock is a bad shock doesn't mean it should cause a recession. A recession is a monetary coordination failure. Monetary coordination failures are caused by monetary policy. Start with a Robinson Crusoe economy. By assumption, Robinson Crusoe...

Why did (Canadian) inflation-targeting work in 1996 but fail in 2008?

In both 1996 and 2008 the Canadian economy was hit with a big shock. The 1996 shock was the change in fiscal policy, turning a large deficit into a large surplus. The 2008 shock was the global financial crisis. (Canada...

The efficiency wage case for maximum wage laws

I think Larry Summers is wrong, on a point of theory. He commits a fallacy of composition. (That's a brave way to start the day.) He says (HT John Cochrane): "Businesses will raise wages to a point where the cost...

Twitter Followers and Canada's Federal Election

Well, I thought it was time to resurrect an activity I last did a number of years ago – in 2011 - during an Ontario election campaign. I tracked the number of Twitter followers each party leader had during the...

A question for beta bankers

This post covers the same ground as my previous post, but it's written for a different audience. It's written for those people who approach monetary policy from a banking/finance perspective. Suppose you are running a commercial bank. Let's call it...

Interest rate control as beta-anachronism

I want to make a minor point to follow up on something important that David Glasner said: "Nevertheless, our basic mental processes for understanding how central banks can use an interest-rate instrument to control the value of money are carryovers...

Problems with the Fraser Institute inequality study

This post was written by Mike Veall of the Department of Economics at McMaster University. Last week the Fraser Institute published a study that one of the co-authors, Christopher Sarlo, summarized in the Globe and Mail (Is the income gap...

On defining "recession"

The precise definition of "recession" seems to be topical in Canada right now. (I know this because my daughter phoned to ask me the definition.) It's a mug's game. I won't play. (Do geographers waste their time arguing about the...

Or perhaps women's offices actually are colder?

Another day, another article about the gendered impacts of air conditioning. Here's the story: North American offices are air conditioned to a temperature which is, from a female perspective, too cold. Women shiver at their desks; men are just fine....

Ottawa as Robin Hood

As the eurozone bumps along from major crisis to minor crisis to existential crisis, the point is often made that a key feature of successful monetary unions that is missing in the eurozone is a system of transfers. These transfers....

Open borders vs forced emigration

Let's start simple. There are two physically identical islands, Alpha and Beta. There are two agents, A and B. Initially, A lives on Alpha, and B lives on Beta. Under "Open Borders", each agent has the right to move to...

Maybe profs should haggle over textbook prices?

Mark Perry shows that textbook prices have been increasing, a lot. I don't know why that is. But maybe there's something that profs could do about it. The publisher's rep drops by your office. She asks which book you will...

Greece's Plan B

Very interesting. But was it also stupid? Leave aside the political/legal aspects. How would it work? In theory, at least. (Did I really need to add that?) Here are some very quick thoughts: If I hold $20 in paper currency,...

Thoughts on reading Silvio Gesell on money

I hadn't read Silvio Gesell. I only knew about him from Chapter 23 of Keynes' General Theory, from Miles Kimball's post on Gesell's plan for negative interest rates on money, and from the Wikipedia entry. But I'm halfway through writing...

Are all Eurozone GDP data "fake"?

The title is a little more inflammatory than I want it to be, but I can't think of a simple way to ask the question properly. And it is a genuine question, because I don't know how they construct GDP...

Proxies for monetary disequilibrium

Perhaps we should think about monetary policy this way. If all prices were perfectly flexible, monetary policy wouldn't matter much. Monetary policy matters because not all prices are perfectly flexible, which means that bad monetary policy causes monetary disequilibrium, which...

Panglossian expectations and the Phillips Curve

[This post is unfinished. I was writing it yesterday, thinking it would work out, then I realised there was a problem. I slept on it, but can't see any obvious resolution. But sometimes we learn from seeing that things don't...

Individual and aggregate, marginal and total, incentives to cut prices in a recession

The purpose of this post is to lay out the intuition behind my discussion/argument with Steve Randy Waldman. We need to distinguish between the individual and aggregate incentives of cutting prices. (Steve gets this, of course, which is why he...

Coordination problems and discontinuities

Just a quickie. This is for Steve Randy Waldman, who says "Downward price stickiness is a coordination problem, plain and simple." It is a coordination problem (I think), but it's a bit more than just a coordination problem. There must...

Copyright © 2015 Regator, LLC