Here’s a big backlog of things I wanted to blog about, but don’t have time to cover in depth:
1. Jim Hamilton discusses a fascinating study on the effects of colonialism by Feyrer and Sacerdote .
2. David Henderson asks about the balanced budget multiplier being one. Why would workers produce more for no increase in after tax income? Isn’t the Keynesian answer that workers have no say in how much they work?
3. Bryan Caplan points out that they blew it on the payroll tax cut.
4. Arnold Kling and Russ Roberts make AD seem more mysterious than it really is. When both output and inflation rise, AD has risen. When output rises and inflation falls, AS has risen. (Oops, replace “inflation” with NGDP growth.)
5. Bryan Caplan nails it: “When “they” take over, we’ll be them.” I recall reading that by 2050 the US government will consider America to be “50% white.” But at the same time 71% will self-identify as “white.” I think it will be much higher than 71%.
7. Karl Smith points out (correctly) that just because progressives are hypocrites, doesn’t mean they are wrong:
I suggest that a rich person can consistently favor taxes on the rich without volunteering to pay such taxes him or herself. The argument is simply that the world in which every rich person pays is preferable to me to the world in which no rich person pays which is preferable to me to the world in which only I pay.
Let he who has (anonymously) donated a kidney to a stranger cast the first stone.
8. Arnold Kling exposes the myth that deregulation led to the banking crisis.
9. Matt Yglesias gets it: NGDP is the actual “thing.”
1o. Bill Woolsey shows that it doesn’t matter all that much which version of NGDP you target.
11. David Beckworth refutes Joe Weisenthall.
12. The wisdom of Nick Rowe:
The interest rate language they currently use does not contain negative numbers. And it is an ambiguous language when it comes to whether an increase in nominal interest rates means a tightening or a loosening of monetary policy. . . . It might be pushing things only a little too far if I said that economics is a sub-field within philosophy of language.
14. I’ve noticed that all the “Don’t be naive Sumner, the Fed holds short term rates below long term rates to help the big banks” comments have mysteriously stopped with Operation Twist.
I will be traveling, and hence may be slow in responding to comments.