Archive for Nick Rowe
Potpourri
Some various YouTube links for you: ==> FEE president Larry Reed’s “Seven Principles of Sound Public Policy.” This is a talk that he’s been giving for years (I believe). ==> Louis CK versus Jay Leno. I was actually surprised by how well Leno stood up against the man who is, in my opinion, the world’s […]
Read moreQuestions for Keynesians
1) When it comes to the “zero lower bound,” what’s the relevant maturity? Scott Sumner and Tyler Cowen are celebrating the end of the liquidity trap, but their argument makes no sense to me: Short-term Treasury yields are still basically zero, and long-term yields were never near zero. But then, if the Keynesian answer is […]
Read moreOne Last Volley on the Keynesian Cross
Somebody emailed me the relevant section from Krugman/Wells on this stuff. Unfortunately it’s not a smoking gun; both sides will see what they want to see. Krugman walks through the original Keynesian logic of using the MPC to derive “the” multiplier (with math, not geometry). So someone who wants to bust him, would just look […]
Read moreGreat Moments in Paradox History
“War Is Peace.” — George Orwell, 1984 “It became necessary to destroy the town to save it,” US military official quoted by Peter Arnett. “I’ve abandoned free market principles to save the free market system.” — George W. Bush “If you are worried about the dangers of an extended period of low interest rates, the […]
Read morePotpourri
==> I make a modest point about fracking and federalism. ==> Simon Lester thinks Krugman is up to no good on his post about protectionism, but I don’t really have a dog in that fight. BTW, my Krugman takedowns are still coming, I’m just digging myself out of a pile of stuff. ==> Consumers are […]
Read moreInterest Does NOT Equal the Marginal Product of Capital, Even in Equilibrium
Oh man, here I’m trying to really be productive. I have even come up with strict limits on my Facebook time. And then Nick Rowe goes and starts posting on capital & interest theory! Here’s the situation in a nutshell. In mainstream economics, it is commonplace for people to say that in a competitive equilibrium, […]
Read morePotpourri
==> I want to call your attention to a major UPDATE I made to my response to DeLong/Krugman, inspired by Nick Rowe’s thoughts on macroeconomic disputes. ==> Justin Merrill makes some good points about Cantillon Effects. One thing I had meant to mention myself: The people objecting to the “simplistic” Austrian critiques love to say, […]
Read moreLearning From Brad DeLong and Paul Krugman
[UPDATE below.] Rather than have a long series of posts discussing the fallout from my (price) inflation bet with David R. Henderson, I decided to do one comprehensive reply to Brad DeLong and Paul Krugman. I had toyed with not even responding, but two things ruled that out: (1) This isn’t a case of two […]
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