So the Reserve Bank left the cash rate unchanged at 2.5%. Three quick points: Their forecasts are stronger than in June, They talked alot about structural imbalances (something I heard about a couple of months ago), They actually framed their decision in terms of inflation again, like the Aussies have been. “Annual CPI inflation is …
Monthly Archive: September 2009
Permanent link to this article: http://www.tvhe.co.nz/2009/09/10/rbnz-mps-sep-09/
Sep 09 2009
Space mirrors, carbon permits, and global warming
Could it be. Could technology save us from global warming through “space mirrors” and ” carbon absorbing rocks” (source). Maybe. In that case, should we not worry about pricing carbon. No. Why? Well, if it turns out that countries can cheaply get below the appropriate carbon producing targets with these technologies, then the price of …
Permanent link to this article: http://www.tvhe.co.nz/2009/09/09/space-mirrors-carbon-permits-and-global-warming/
Sep 08 2009
Why all the talk about a new currency?
I’m lost here. According to this article, and a bunch of others like it, we need a new international currency to protect little countries (like NZ) and relatively undeveloped countries. There are two ways of taking this: Using the US$ as a sole reserve currency is too risky, we need a basket of currencies. We …
Permanent link to this article: http://www.tvhe.co.nz/2009/09/08/why-all-the-talk-about-a-new-currency/
Sep 04 2009
Chelsea’s transfer ban and the potential for player hold-up
FIFA have punished Chelsea by banning them from the signing new players in the next two transfer windows after they were found guilty of inducing Gael Kakuta, a France youth international, to breach his contract with Lens in 2007. The decision means that Chelsea will not be able to add to their squad until January …
Permanent link to this article: http://www.tvhe.co.nz/2009/09/04/chelseas-transfer-ban-and-the-potential-for-player-hold-up/
Sep 04 2009
Ever organised a dinner party?? Then you are an expert in running a two-sided market!
In my wanderings I found this neat little example using dinner parties to explain two sided markets (source): The task facing a certain kind of entrepreneur these days is no more unfamiliar than the engineering of a successful dinner party. The French ambassador would never so much as respond to an invitation — unless you …
Permanent link to this article: http://www.tvhe.co.nz/2009/09/04/ever-organised-a-dinner-party-then-you-are-an-expert-in-running-a-two-sided-market/
Sep 03 2009
Why?
Defective Equilibrium mentions that John Minto’s idea of a salary cap is madness. He is correct. My question is why? Why have a salary cap? Why would society need to stop people voluntarily trading? If someone pays someone else an “eye popping salary” this is voluntary trade, why do we feel that we have to …
Permanent link to this article: http://www.tvhe.co.nz/2009/09/03/why/
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