Via James I see that the Financial Times has given a strange write-up of the RBNZ speech from yesterday (my view here). The focus of the FT article is solely on the dollar, which in itself is cool as most of the speech was indeed on the dollar. But they interpreted the comments a bit […]
Excellent. The RBNZ has come out and discussed what is going on with manufacturing, what monetary policy can achieve, and the fundamental point that any “failure” stems from distortions in the domestic economy – not from flexible inflation targeting. Globalisation, outsourcing, and international supply chains, along with competition from low cost producers and rising global […]
Japan is offering a neat example of the J-curve (short term violation of the Marshal-Lerner condition), showing that the trade balance may deteroriate following a sudden depreciation in the currency – due largely to the fact the volume of exports and imports takes time to respond to price signals (they are sufficiently price inelastic in […]
It was very sad to hear the Armen Alchian passed away today. His views on the theory of the firm had a big impact on the profession, and on me as an individual. I remember finding Production, Information Costs, and Economic Organization (pdf, summary) extremely useful as a student – it was probably the first […]
Note: PP on twitter asked for a post on MMT, and asked me to try to avoid making it technical. I attempted to do that at much as I could – however, I was forced to use words like endogenous, as it was the cleanest way of trying to get across the point that by […]
I see that Durex has been asking people who the sexiest politicians are. Now I don’t really care about politics – but I really care about New Zealand economics! So I decided to grab a bunch of photos of economists who I see in the public eye a lot, and let the half dozen readers […]