I’ve heard a good prisoners dilemma argument for suspending dividends at the moment – however, I don’t think that is the reason is it 😛

Depends if you believe speculation was the cause of the Asian Financial Crisis – personally I think it was the result of agents not taking risk into regard because of poor institutional structure 😛

“Or, to put it another way, distorting the already distorted doesn’t worry me so much.”

Even if we don’t have perfect markets, the distribution of information and the relative prices gives us a situation that it preferable to a situation with distortions. Even though agents can not ensure that they are maximising ex post payoffs ex ante there is a cost associated with distorting there ex ante choices – the cost is simply some distribution, which could go negative, but has a positive mean.

Thats probably how I feel about it, maybe 😛

Why’s this a problem? or, to put it differently, what’s the value of the information and was it really worth the Asian Financial Crisis?

FWIW I don’t think it’s a difference in value judgements between us – we’re both utilitarians after all, and it is only at this level (and, even then, only partially) where value judgements come into economics. At all other levels it’s wrong or right, or contestable based on current data.

As best I can tell, I think the difference between thus:

I see a world much further removed from the ideal of perfect competition with perfect information (the world of Arrow-Debreu, if I remember it right) than you do. And so, in principal, I’m not as worried as you about taxes messing such a world up. (In practice, I do want to know the empirical impact of course.)

Or, to put it another way, distorting the already distorted doesn’t worry me so much.

BTW – I’m still really enjoying the blog; lots of interesting comment.

I find it hard to trust my own judgment unless I put it up for scrutiny – even if the thing I am criticising seems “obviously” wrong. Knowledge can only be gained by putting arguments out there and making yourself vulnerable – seeing other people put things out there gives me new idea about how I can stick my neck out 😛

I enjoy going to their blog because it gives me things to write and think about – so I do enjoy this element of what they do. Even if I don’t agree with things I like seeing people actually put there cards on the table.

“I think just for laugh if I/we do another post on the Greens the title will be:”

Is anyone else going to release policy soon – it gives us so much to write about.

GreensWatch:”insert subject here”

Er yes, it is policy, you’re right. Totally impossible at the moment, but they often put up ideas on that blog that people accuse them subscribing to – this one is out there so I think I just mentally filed it in the ‘not happening’ category!

And I think the coverage of the Greens is justified, should’ve put a 😀 somewhere in the last.

I think you provide a social service Matt:)

lol, I hope you mean amusing in a good way!