Via the Money Illusion I see that there is a suggestion to make consumption taxes an automatic stabiliser for a given economy. Russ Abbott, who is a computer science professor at Cal State LA, sent me an ingenious plan for having the Fed use fiscal policy to stabilize the economy. It involves sales tax rebates …
Category Archive: Macroeconomics
Permanent link to this article: http://www.tvhe.co.nz/2012/01/25/automatic-smoothing-with-vatgst/
Sep
19
2011
Wealth distribution and demographics
A very good point from Stephen Gordon at Worthwhile Canadian Initiative that the growing concentration of wealth may, in part, be to do with changing demographics. Although I doubt this is the sole factor behind the growing concentration of wealth, it is a factor I’ve been thinking about – and that I’m keen to see …
Permanent link to this article: http://www.tvhe.co.nz/2011/09/19/wealth-distribution-and-demographics/
Sep
08
2011
Uncertainty, policy, and recessions
Via Anti Dismal, there is a post discussing regime uncertainty and recessions – and criticising some of the world’s Keynesian bloggers for ignoring the role of uncertainty. Now I think the real options argument that uncertainty reduces activity is undeniable, but I also don’t think that any economist – Keynesian or not – disagrees with …
Permanent link to this article: http://www.tvhe.co.nz/2011/09/08/uncertainty-policy-and-recessions/
Sep
05
2011
Workers are different
It is true, and yes it is obvious … however, just because it is obvious doesn’t make it a useless fact – in truth it is an essential, and oft ignored point to keep in mind. As raised here (ht MR): Those of us who actually work in industry and are involved in large engineering …
Permanent link to this article: http://www.tvhe.co.nz/2011/09/05/workers-are-different/
Mar
30
2011
An illustration that using data for a conclusion is not objective
There is an interesting post over at John Taylor’s blog (ht Greg Mankiw). In it he shows that government spending as a % of GDP has a strong positive correlation with unemployment, and that investment as a % of GDP has a strong negative correlation. His conclusion is to focus on cutting taxes to increase …
Permanent link to this article: http://www.tvhe.co.nz/2011/03/30/an-illustration-that-using-data-for-a-conclusion-is-not-objective/
Mar
30
2011
Fiscal spending: Cycles and structures
No, I’m not talking about the cycleway – although if Bill English does want to cut “nice to haves” surely this is a place to start I’m talking about this comment from Ganesh Nana, where I both agree with him and disagree with him simultaneously. The plans (to cut spending) were criticised by BERL chief …
Permanent link to this article: http://www.tvhe.co.nz/2011/03/30/fiscal-spending-cycles-and-structures/
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