Via Marginal Revolution On a banking glut. On excessive financing. Both arguing against the “excessive savings” view of the crisis – which is currently my prior. Will be reading these (rereading in the case of the second one) in order to avoid listening to more crap about the NZ election … seriously, I didn’t realise …
Category Archive: Depression II discussion
Permanent link to this article: http://www.tvhe.co.nz/2011/11/24/papers-to-read/
Dec
02
2010
Irish and Greek crises: Why is NZ different?
This post from Marginal Revolution has moved me from thinking to writing. On the surface there appears to be a lot in common with the Irish, Greek, and NZ economies. All three have high net foreign liability positions, liabilities are highly concentrated through banks who are borrowing overseas, all three have experienced some form of …
Permanent link to this article: http://www.tvhe.co.nz/2010/12/02/irish-and-greek-crises-why-is-nz-different/
Oct
07
2010
Race to the bottom actually race to the top
Note: The title should be premised with in the current extreme environment – I am not supporting the idea that we can have permanent income gains beyond potential from printing money, that would simply be inflationary. A bunch of poppycock from Reuters on “currency wars” here. I’ll let Scott Sumner discuss the fallacy here. I …
Permanent link to this article: http://www.tvhe.co.nz/2010/10/07/race-to-the-bottom-actually-race-to-the-top/
Mar
16
2010
Three open economies walk into a bar …
There has been an interesting discussion comparing the recession in three open economies, Australia, Canada, and New Zealand. It started with the Canadians, but a couple of New Zealanders then became involved. The facts are that: Headline inflation in all three countries is currently close to target (implying that we all made our inflation targets), …
Permanent link to this article: http://www.tvhe.co.nz/2010/03/16/three-open-economies-walk-into-a-bar/
Dec
16
2009
Against the Paradox of toil
In a recent post Paul Krugman raises the “paradox of toil” to explain why tax cuts are silly and government spending is good during a recession: So what’s the paradox of toil? If you cut taxes on labor income, this expands labor supply — which puts downward pressure on wages and leads to expectations of …
Permanent link to this article: http://www.tvhe.co.nz/2009/12/16/against-the-paradox-of-toil/
Dec
09
2009
Supply shocks, demand shocks, and corridors
In a recent post by Arnold Kling I see him hinting at the similarities between his recalculation view of the current recession and the corridor theory of Axel Leijonhufvud. Now I agree with both these theories, and feel they add an important flavour to current debate – but I think the theories actually tell us …
Permanent link to this article: http://www.tvhe.co.nz/2009/12/09/supply-shocks-demand-shocks-and-corridors/
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