In an interesting piece on the Rates Blog there is a suggestion that the governments focus on tourism doesn’t make sense because it is a low productivity industry. In the comments there is a lot of chatter about what industries we should invest in – blah blah blah. The comments and suggestions all sound a […]
A Bloomberg article stated that Bernanke is rejecting Friedman and following Keynes by printing money in the current environment (ht The Big Picture). However, this is far from the case. Friedman believed that in the short run monetary policy could be used for demand management, but in the long-run undisciplined monetary policy will lead to […]
Tim Harford – someone I personally believe is one of the best economists of our time – has come out stating that modern macroeconomics is a failure. (ht Economist’s View – note that commentary in this post is very good, I agree with much of what Mark Thoma is saying except for the belief that […]
Curious Cat has an economics carnival on at the moment. It is a good idea – it is interesting that economics doesn’t seem to have as many carnivals while other disciplines do. Go check out the posts from all around the economics blogsphere.
Paul Krugman appears to be saying that a temporary increase in government spending can provide a stimulus EVEN WHEN full Ricardian equivalence holds. All the comments on his blog are saying how simple his explanation is, and how the Chicago school is full of morons – but I don’t really think his argument water tight.
Earlier I mentioned a piece by Steven Gjerstand and Vernon Smith that was a bit harsh on monetarism – as it ignored that the monetarist explanation and a economic readjustment explanation could be complements instead of substitutes. Now Barry Ritholtz points out another interesting point from the piece – their discussion of the fact that […]