Krugman on high stock prices
Paul Krugman has an excellent post discussing why stock prices are relatively high. Apart from the opening paragraph, where he (implicitly) dismisses the EMH and rational expectations, I almost...
View ArticleIs price flexibility stabilizing?
Rajat directed me to a post by Miles Kimball, entitled “Pro Gauti Eggertsson”. Over at Econlog I discussed one paragraph from his post. Here I’ll discuss another: Gauti has also taken a lead in...
View ArticleThe internet’s highest honor
Vaidas Urba pointed me to a very clever post by John Carney of CNBC. It includes parodies of many well known bloggers, on the theme of Christmas and economics. Here’s an example–see if you can guess...
View ArticleIs the battle against “reasoning from a price change” unwinnable?
Over at Econlog, I have another post that touches on reasoning from a price change. I must have already done a hundred such posts. And yet every day I see more examples of this EC101 error in...
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Abe reasons from a price change
Here’s the FT: Shinzo Abe has demanded Japanese companies lift pay by three per cent next year as he uses his big victory in last week’s election to intensify his push to boost the country’s economy....
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Is an NGDP Phillips Curve somehow “wrong”?
I touched on this issue over at Econlog, but I’ll try again here in slightly a different way. The original Phillips Curve from 1958 had nominal wage inflation on the vertical axis. (Actually the...
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Two examples of low interest rate monetary policies
I’ve done a number of posts comparing New Keynesian and NeoFisherian views on the relationship between monetary policy and interest rates. Here I’d like to illustrate the problem with a picture, as...
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Erdogan reasons from a price change
[I wrote this a few weeks ago, and then decided not to post it. After today’s news I changed my mind.] Turkish President Erdogan claims that the way to lower inflation is to have the central bank hold...
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Teaching money/macro in 90 minutes
A few weeks ago I gave a 90-minute talk to some high school and college students in a summer internship program at UC Irvine. Most (but not all) had taken basic intro to economics. I need to boil...
View ArticleDo low interest rates stimulate housing?
If you answer this question with a “yes”, then you are reasoning from a price change. I thought of this when reading the abstract to a paper by David W. Berger, Konstantin Milbradt, Fabrice Tourre,...
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