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It appears that National intends to do just that following this election – providing grants to individuals who lose there job beyond the unemployment benefit, but only for “during the recession”, and only “needs based”. This is probably one of the most ridiculous ways anyone could try to deal with the current recession – although […]
This is the year!
Lionel Robbins (*): Economics is a science which studies human behavior as a relationship between ends and scarce means which have alternative uses This is the fundamental definition of economics that I adher to when I write here. In all honesty this is not the sole definition of what people “see” economics as – however, […]
Kevin D Hoover: The claim that representative-agent models provide micro-foundations succeeds only when we steadfastly avoid the fact that reporesentative-agent models are just as aggregative as old-fashioned Keynesian macroeconometric models Kevin Hoover is a professor at Duke University. I put down this quote as I believe that the modern day process of macroeconomics is likely […]
So investors are “rushing” to finance companies to invest money. One of my economist friends just told me he tried to invest money in a finance company, just to be told that they were “over-subscribed”. I have two concerns stemming from this: Moral hazard: Finance companies will invest in higher risk ventures to get the […]
This from the Minneapolis Fed: Thus, roughly 80 percent of such business borrowing is done outside of the banking system. The claim that disruptions to the banking system necessarily destroy the ability of nonfinancial businesses to borrow from households is highly questionable There are two ways I can read this quote, one that I agree […]