To a degree I support this. Then again – there is an argument to keep them afloat. If they are subject to a binding credit constraint, and they would be profitable in the medium term, a loan to GM (at market interest rates) could be good for everyone – especially if they are unable to […]
Chris Worthington from Infometrics has spoken out against a fiscal stimulus in NZ in the current environment. I agree, as I have said before. Note, I also raised some criticisms of my idea which could be applied here. Overall, there is a time and a place for special, temporary, fiscal policy (although, even in this […]
Seriously, lets all go and read Scott Sumner. He discusses how monetary policy can still be effective even when the cash rate hits zero, and I find it difficult to fault his reasoning. I would suggest reading all the posts, but there are a few that touched me:
The RBNZ stated today that long-term interest rates have risen too quickly. There forecast recovery was premised on a low dollar and a relatively flat yield curve – however, it seemed a bit disingenious to suggest that we would have a foreseeable strong recovery and a flat yield curve 🙂 . However, this logic was […]
Interesting article proclaiming the end of “homo-economicus” (ht Economist’s View). This is an issue I care about a lot – so one day I’ll attempt to discuss the article in some detail. Today however, I’m just linking to the article and waiting to see what interesting comments you guys have about it 😉 It also […]
(Source XKCD) Technological improvements will always be the primary way to improve living standards. See here, here, and here.