Gore vs. Unabomber
Can you tell who is who on this test? Now admittedly there is sample bias (I’m sure they had to cherry pick the Unabomber’s saner moments). But I scored only 25%!javascript:void(0)
Read more...Category Archives: The dismal science
"Political Compass" Test
More test fun. Dani Rodrik pointed to this test (which he found via Greg Mankiw). The test measures your views on the right/left and authoritarian/libertarian axes. The results section plots where you stand and you can see where you stand relative to contemporary and historical figures. The contemporary grid below:Full disclosure: I’m located pretty close […]
Read more...Barry Ritholtz Squares the Circle on GDP Growth vs. Consumer Spending
The most puzzling element in the recent set of economic releases and revisions on GDP growth is the disconnect between overall growth and consumer spending. The initial release for the first quarter showed GDP growth of 1.3% despite a rise in consumer spending of 3.8%; the revisions released last week reduced GDP growth to a […]
Read more...The Anthropology of the Econ
A few days ago, Chris Hayes’ article in The Nation, “Hip Heterodoxy,” set off a huge chatter among economics blogs raising the question of heterodoxy in the profession (which by all counts is very much in retreat). The article below, “Life Among the Econ,” by Axel Leijonhufvud on the culture and ritual of the Econ, […]
Read more...Money Supply, Inflation, and the Emperor’s (i.e., Central Banker’s) Nakedness
The Financial Times on Monday had two stories on inflation, one a lengthy story, the other a a comment, “The problem with inflation indices,” by Gideon Munchau, triggered by the fact that the Bank of England missed its inflation targets of 2% by over a percentage point (their Consumer Price Index increased at an annualized […]
Read more...Greg Mankiw Argues for Paying Harvard Workers Badly
By way of background, Greg Mankiw was Chairman of Bush’s Council of Economic Advisers, is the author of a very popular economics textbook, teaches at Harvard, and is a advisor to Mitt Romney. Not surprisingly, that makes him a card carrying member of the economics orthodoxy. So when some Harvard students went on a hunger […]
Read more...Dani Rodrik Looks at the Free Trade Math and Finds Some of It Wanting
The debate among Serious Economists about the benefits of free trade continues, and Dani Rodrik continues to take a dispassionate look at the data and the models. This post, although a bit geeky, is intriguing because Rodrik dissects an analysis cited by Bernanke in a recent speech, which found that the benefits of free trade […]
Read more...Trade: China Doesn’t Play by the Rules
Readers may have taken note about the robust debate among Serious Economists about free trade, provoked in large measure by Harvard economist Dani Rodrik holding some of his peers’ feet to the fire (note that Rodrik is not anti-free trade, but anti sloppy or dumbed down justifications). One continuing bone of contention between economists and […]
Read more...Inflation Targeting: The Fed’s Excuse to Ignore Asset Bubbles?
Kudos for an excellent post, “Inflation Targeting is Flawed,” by Michael Shedlock at Mish’s Global Economic Trend Analysis. Like many other observers, we’ve criticized the Fed’s failure to consider, or even acknowledge, asset price inflation in its monetary policy decisions. Instead, the Fed and other central bankers focus on traditional price inflation, and stick their […]
Read more...When Does Theory Say Free Trade is a Good Thing?
Dani Rodrik, if he thought it wasn’t beneath him, deserves an op-ed column at a well respected paper. He has managed to foment a good deal of lively debate among Serious Economists (the blogs involved include his, Brad DeLong’s, Mark Thoma’s, and Greg Mankiw’s) on the question of trade economics. For the most part, Dani […]
Read more...Estimating the Gains and Losses from Free Trade
Yesterday, our post “Costly Trade with China,” cited a study by the same name by the Economic Policy Institute which estimated the jobs lost to trade with China between 1997 and 2006 at 2.1 million. I wondered whether anyone had done the calculus as to what the offsets to these job losses might be, and […]
Read more...The Fed: The Need for a Paradigm Shift
Due to Paul Volcker’s having broken the back of inflation in the early 1980s, and Alan Greenspan performing what appears to be adequately on the substance of his job and masterfully at the showmanship, the Fed’s reputation is at an all time high. And that in and of itself is a danger sign. The Fed’s […]
Read more...More Debate About Free Trade
The debate among some serious academics on the economic models, their merits, and what they say about who might win or lose from trade continued over the weekend. While informative, it was also oriented heavily towards theory. Dani Rodrik tries to sum up: Can we all agree on these? 1.Trade policy works through its effect […]
Read more...Free Trade and Intellectual Honesty
Yesterday, we featured a post from Dani Rodrik which observed that free trade doesn’t necessarily lower prices (it will lower prices of imports and increase prices of exports, so it depends on the mix of goods purchased). What is interesting about the debate that unfolded is that it tells us something not just about free […]
Read more..."Does Free Trade Bring Lower Prices?"
This is a nice post from Dani Rodrik. The short answer is it depends. Free trade increases the price of export goods and lowers the price of imports: [A]nyone who understands comparative advantage knows that free trade affects relative prices, not the price level (the latter being the province of macro and monetary factors). When […]
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