Posts Tagged ‘ economics ’

Lost in a maze of money aggregates

February 20, 2011
posted by

Campaign For Liberty Campaign For Liberty
by Robert P. Murphy  

"One of the most important concepts in economic theory is the quantity of money. However, when going from theory to practical application, things get messy. In the real world, it's not obvious how to count up the amount of 'money' in the economy at any given time." (02/18/11)

http://www.campaignforliberty.com/article.php?view=1333  

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Krugman and bias

February 20, 2011
posted by

Tibor R. Machan A Passion for Liberty
by Tibor R. Machan  

"Paul Krugman claims that the economics profession -- including the editors of scholarly journals and the staff at econ departments -- is fraught with bias. This is a serious charge, impugning the integrity of those involved. Any scientist in any discipline who engages in biased thinking is disloyal to his oath of office, one might say." (02/17/11)

http://tinyurl.com/4lkzh26  

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Congressional testimony on the stimulus

February 17, 2011
posted by

Cafe Hayek Cafe Hayek
by Russ Roberts  

"Over the last two years, the American Recovery and Reinvestment Act of 2009 has injected over half a trillion dollars into the US economy in hopes of spurring recovery and creating jobs. The results have been deeply disappointing." (02/16/11)

http://tinyurl.com/4oyydqj  

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Scrap the minimum wage for young people

February 17, 2011
posted by

Adam Smith Institute Adam Smith Institute
by Eamonn Butler  

"Youth unemployment -- and the same is true of immigrants and other minority groups -- is always worst when times are hard. Employers keep the best workers and shed the labour they do not value so much. And the fact is that young people are just not worth as much to employers as older workers. ... And yet government regulation forces employers to pay not less than £4.92 per hour for 18 to 20-year-olds and £5.93 for those 21 and above." (02/17/11)

http://tinyurl.com/652vk9f  

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What is economic activity?

February 15, 2011
posted by

EconLog EconLog
by Arnold Kling  

"In standard macroeconomics, economic activity consists of spending. Certainly that is how we measure economic activity, using national income accounts. However, I propose looking at economic activity as patterns of sustainable specialization and trade (PSST). We can break down economic activity into three components ..." (02/14/11)

http://econlog.econlib.org/archives/2011/02/what_is_economi.html  

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What can the law of diminishing marginal utility teach us?

February 13, 2011
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Thorsten Polleit  

"The law of diminishing marginal utility is at the heart of the explanation of numerous economic phenomena, including time preference and the value of goods; and it also plays a crucial role in showing that socialism is economically and ethically inferior to capitalism. The law of diminishing marginal utility, as developed by Carl Menger (1840–1921), is axiomatic in nature; that is, it is irrefutably true." (02/11/10)

http://tinyurl.com/4n5fe8j  

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The Wallison dissent

February 9, 2011
posted by

EconLog EconLog
by Arnold Kling  

"Wallison, as you may know, is one of the few experts wanting to put most of the blame for the crisis on government pressure on Freddie, Fannie, and the banks to reduce lending standards. One of the criticisms leveled at this view is that it is impossible to blame U.S. housing policy for foreign housing bubbles. As you can see, Wallison's comeback is that foreign housing bubbles did not produce as much financial devastation, because mortgage credit standards were not as heavily compromised as in the U.S." (02/08/11)

http://econlog.econlib.org/archives/2011/02/the_wallison_di.html  

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Existence, enhancement, CPI bias, and progress

February 7, 2011
posted by

EconLog EconLog
by Bryan Caplan  

"Almost all economists agree that the official Consumer Price Index is biased upwards. Two key flaws with the CPI: It imperfectly accounts for (a) quality improvements, and (b) new products. The Boskin Commission famously estimated that the official annual CPI increase was over a percentage point too high. When you measure economic welfare over time, this seemingly academic issue has massive implications: Year after year, real income rises by over 1% more than official figures claim." (02/07/11)

http://econlog.econlib.org/archives/2011/02/existence_enhan.html  

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Ideology and Tyler Cowen’s stagnation thesis

February 6, 2011
posted by

EconLog EconLog
by Arnold Kling  

"One of the main points that free-market economists make in defense of capitalism is that it promotes innovation. Again, Cowen would not deny this. But the claim that innovation has run out of low-hanging fruit might be interpreted to suggest that we should just give up on it for now. Instead, since the advantage of capitalism is no longer available, we might as well do more central planning and redistribution. That may not be Cowen's policy conclusion, but I think it is what statists will take away from his e-book." (02/04/11)

http://econlog.econlib.org/archives/2011/02/ideology_and_ty.html  

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The rent’s still too damn high — here’s how to lower it

January 16, 2011
posted by

C4SS Center for a Stateless Society
by Kevin Carson  

"I frequently argue that, far from being the result of the 'free market,' the recent speculative bubble was the result of over a century’s worth of government intervention. The bubble resulted from vast disparities of wealth — disparities of wealth created by the state and its enforcement of privilege — with a growing share of income going to classes looking to use it for investment rather than consumption. Someone recently challenged me to describe exactly what government interventions I’d eliminate to remedy this situation, and exactly what effect I’d expect them to have." (01/13/11)

http://c4ss.org/content/5808  

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Value, cost, marginal utility, and Bohm-Bawerk

January 16, 2011
posted by

Foundation for Economic Education Foundation for Economic Education
by Sheldon Richman  

"Does cost of production determine price or does price determine cost of production? In the world of economic caricatures, the classical economists (Smith, Ricardo, et al.) took the former position, the Austrians the latter. Specifically, the Austrian view supposedly is that that demand driven by marginal utility determines the price of consumer goods, which is then imputed backward to the factors of production." (01/14/11)

http://tinyurl.com/4zw2ryc  

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Bank reserves: Thesis, antithesis, synthesis

January 16, 2011
posted by

Free Advice
by Robert P. Murphy  

"We all know the standard textbook story of fractional reserve money creation: The Fed buys assets and creates new reserves (“out of thin air”). Armed with the new reserves, the commercial banks now have excess reserves, so they go lend it out. Thus, the causality goes like this: Fed creates new base money. ==> Banks have excess reserves. ==> Banks create new M1. The only problem is, that’s not how it works in the real world." (01/15/11)

http://tinyurl.com/4qqajvc  

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The government’s “green” jobs

January 16, 2011
posted by

Liberty Unbound Liberty Unbound
by Leland B. Yeager  

"Unemployment in a recession reflects discoordination. Mutually advantageous transactions among workers, employers, and consumers are somehow frustrated. That is what needs attention. Putting emphasis on spending and its destinations is superficial. As W.H. Hutt used to say, spending is a measure of transactions accomplished; it is not what drives transactions." (01/15/11)

http://libertyunbound.com/node/453  

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Hoover, Bush, and great depressions

January 11, 2011
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Mark Thornton  

"The most basic rule of economic policy is to allow prices to adjust to market conditions. This maintains Say's Law and produces what Frederic Bastiat called economic harmony. Furthermore, unhampered markets minimize distortions and disruptions introduced by external forces. Most importantly, the unhampered price system minimizes the impact of the business cycle on the economy." (01/11/11)

http://mises.org/daily/4896  

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A matter of life and death

January 11, 2011
posted by

Foundation for Economic Education Foundation for Economic Education
by Sandy Ikeda  

"I had the privilege of studying under Israel M. Kirzner at New York University in the 1980s. In 2006 Professor Kirzner, one of Ludwig von Mises’s most gifted American students, was given a lifetime achievement award from the Society for the Development of Austrian Economics. In his acceptance speech he made the rather startling statement that the most important lesson he learned from Mises, one of the greatest economic theorists of his age, had nothing directly to do with economic theory at all. Rather, it was that the study and teaching of economics are literally matters of life and death." (01/11/11)

http://tinyurl.com/4wbo4ot  

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Consumption, innovation, and the source of wealth

January 6, 2011
posted by

Foundation for Economic Education Foundation for Economic Education
by Steven Horwitz  

"My penultimate column of 2010 set off minor fireworks in the blogosphere, with negative responses ranging from Matt Yglesias’s civil but critical reply to Brad DeLong’s typical incivility (though I am proud to have, for a second time, made his 'stupid people' list).  It also was praised and reprinted in a number of places, and in several languages, across the free-market blogosphere.  I’ll happily take that tradeoff." (01/06/11)

http://tinyurl.com/2g7fsyq  

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What is economics good for?

January 6, 2011
posted by

Cafe Hayek Cafe Hayek
by Russ Roberts  

"In three recent posts ... I have argued that macroeconomics is deeply flawed and not a science. Or at least not scientific in the conventional sense of the word. Let me try to make my claims a little more precise and react to some of the comments. Just because economics isn’t like physics doesn’t mean it’s useless. So I will also try to talk about what it is useful for." (01/05/11)

http://cafehayek.com/2011/01/what-is-economics-good-for.html  

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My proposal for a code of ethics for economists

January 4, 2011
posted by

EconLog EconLog
by Arnold Kling  

"There has been much discussion of late of a code of ethics for economists, with a focus on disclosing personal interests. I would go in a different direction. My code of ethics would consist of one line: Take into account the possibility that you may be wrong." (01/03/11)

http://econlog.econlib.org/archives/2011/01/my_proposal_for.html  

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The perils of amateur epidemiology

January 3, 2011
posted by

EconLog EconLog
by Arnold Kling  

"Epidemiology is a difficult topic. I think that if economists are going to contribute anything to the field, it not be by doing studies based on regression methods. If anything, we should contribute skepticism about such methods, based on what we have learned about the biases caused by specification searches, data mining, and the bias toward publishing only 'significant' effects (that bias itself undermines the reported significance). Instead, look for natural experiments, and don't forget to be skeptical of those, too." (01/02/11)

http://econlog.econlib.org/archives/2011/01/the_perils_of_a.html  

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In the long run, it’s all microeconomics

January 2, 2011
posted by

Adam Smith Institute Adam Smith Institute
by Tim Worstall  

"Macroeconomics, the study of, among other things, demand, investment, equilibrium at the level of the whole economy and so on is, if you believe most macroeconomists, the only important thing about the whiole science of economics. And I would argue that that's entirely the wrong way around. Macro might be important, useful, possibly even interesting if you like equations, in the short term but the only thing that matters in the long term is microeconomics." (01/02/11)

http://tinyurl.com/3ytacm2  

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Is the bond crisis inevitable?

January 2, 2011
posted by

Human Events
by Patrick J. Buchanan  

"With Christmas shoppers out in force and the stock market surging to a two-year high, talk is spreading that the long-awaited recovery is at hand. Perhaps. But gleaning the news from Europe and Asia as U.S. cities, states and the federal government sink into debt, it is difficult to believe a worldwide financial crisis that hammers governments, banks and bondholders alike can be long averted." (12/31/10)

http://www.humanevents.com/article.php?id=40909  

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Financial regulation questions

December 30, 2010
posted by

EconLog EconLog
by Arnold Kling  

"1. Is it more dangerous for TARP to succeed or to fail?" (12/29/10)

http://econlog.econlib.org/archives/2010/12/financial_regul_3.html  

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The theory of the firm and country by country reporting

December 30, 2010
posted by

Adam Smith Institute Adam Smith Institute
by Tim Worstall  

"The one hundreth birthday of Ronald Coase seems to be a suitable time to consider what his theory of the firm means for a modern proposal: that for country by country reporting." (12/30/10)

http://tinyurl.com/34c25lx  

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Can culture generate spontaneous order?

December 29, 2010
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Bruce Edward Walker  

Review of Literature and the Economics of Liberty: Spontaneous Order in Culture, edited by Paul A. Cantor and Stephen Cox: "A valid question for the creators and critics: What provides the best economic model to ensure the happiness of the seven billion inhabitants of this earth? And what of the billion or more characters inhabiting our planet's literature? This is the theme pursued by Paul A. Cantor and Stephen Cox in their collection of brilliant essays in the economics of literature and liberty." (12/29/10)

http://mises.org/daily/4908  

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The illusion that makes the math look nice

December 28, 2010
posted by

The Libertarian Standard
by Wirkman Virkkala  

"Perhaps the greatest contribution of socialism to economics was to cajole Austrian economists into understanding just how different their theoretical approach was from the main stream of economics. At first, Ludwig von Mises and F.A. Hayek thought they were on the leading edge of that main stream. But the two major debates that they engaged in in the first half of the 20th century — over business cycle theory and regarding calculation in the socialist society — both proved vexing. They should have won both debates. They had the better arguments. But in both cases the majority of economists sided against Mises and Hayek. And in both cases it was, in a sense, over equilibrium theory." (12/27/10)

http://tinyurl.com/2el8nsn  

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