Justin Wolfers says Charles Plosser is being a bit silly on the Freakonomics blog. Specifically he says that: Plosser says we should tighten more quickly than estimates of “slack” suggest, as the level of slack is uncertain, However, since slack is uncertain it could be higher or lower – so this doesn’t make sense unless …
Monthly Archive: December 2009
Permanent link to this article: http://www.tvhe.co.nz/2009/12/29/uncertainty-and-asymmetric-risks/
Dec
28
2009
Are excess reserves driving a “currency misalignment”
One of my favourite excuses for the “high” NZ dollar is currency reserves being built up overseas (in order to “keep their currency low” they need to buy up foreign dosh, building up currency reserves you see). It is an argument the US likes to make without actually doing any analysis as well. However, work …
Permanent link to this article: http://www.tvhe.co.nz/2009/12/28/are-excess-reserves-driving-a-currency-misalignment/
Dec
26
2009
Quote of the day: F.A. Hayek on economists
![File_Hayek[1]](http://www.tvhe.co.nz/wp-content/uploads/File_Hayek1.jpg "File_Hayek[1]")
The economist is the last to claim that he has the knowledge which the co-ordinator would need [for planning]. F.A. Hayek in The Road to Serfdom, 1944
Permanent link to this article: http://www.tvhe.co.nz/2009/12/26/quote-of-the-day-f-a-hayek-on-economists/
Dec
25
2009
Merry Christmas
From TVHE. And don’t forget – if it wasn’t that we arbitrarily valued the idea of people spending time “thinking” about our gifts (and that the gift givers sometimes value looking like they are thinking) it would just be optimal for us to give each other money Also note that the cost of Christmas dinner …
Permanent link to this article: http://www.tvhe.co.nz/2009/12/25/merry-christmas-2/
Dec
23
2009
September quarter NZ GDP
What happened! It will be here. I’m not around (I am currently visiting our lucky neighbour in Australia). I bet that we had a negative quarter didn’t we. That would be a pretty negative shock for people, given that some OK growth was expected. If we did have negative growth does that mean we are …
Permanent link to this article: http://www.tvhe.co.nz/2009/12/23/september-quarter-nz-gdp/
Dec
22
2009
Wages and recovery: A note
There seems to be some hatred for the idea that if nominal wages were more flexible unemployment would not rise as high (here, here, and here). However, I am a fan of the flexibility argument – and not just because my mind struggles to get outside of partial equilibrium When I view wage flexibility I …
Permanent link to this article: http://www.tvhe.co.nz/2009/12/22/wages-and-recovery-a-note/
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