ALL BLOG POSTS
There is no doubt that I strongly favour a policy of removing restrictions on immigrations. Nathan Smith in his recent guest post on my blog showed that a policy of global Open Borders would significantly boost global GDP. However, there might be even better arguments for Open Borders.
On my blog I mostly writes about monetary policy issues. However, I from time to time I venture into other areas. Among the areas I would like to give more attention to is the economics of immigration. I used to teach immigration economics at the University of Copenhagen and have done research on the topic while working at the Ministry of Economic Affairs in Denmark 15 years ago. However, I have not worked professionally with immigrations economics for well over a decade and I have only followed the new research in this area from a bit of a distance.
Yesterday we got confirmation that Italy feel back to recession in the second quarter of the year (see more here). In this post I will take a look at three terrible 'gaps' - the NGDP gap, the output gap and the price gap - which explains why the Italian economy is so deeply sick.
For a while I have wanted to write something about what psychologists call “cognitive dissonance”. The way I think about cognitive dissonance is that individuals tend to look for confirmation of their already held views.
Today Milton Friedman would have turned 102 years. Happy birthday Uncle Milty!
My colleague Arne Rasmussen put it well in a comment on Facebook today:
While it is becoming increasingly clear that Europe is falling into a Japanese style deflationary trap European central bankers continue to refuse to talk about the need for monetary easing to curb deflationary pressures. Instead they seem to be focused on everything else. We have been through it all – the ECB has concerned itself with who was Prime Minister in Greece and Italy about Spanish fiscal policy, rising oil prices in 2011 and about “financial stability”. And believe it or not it has become fashionable for European central bankers to call for higher wages in Germany!
Last week I wrote a post criticizing Fed chair Janet Yellen for apparently becoming a "stock picker". Later later in the week she spoke before the US House Financial Services Committee in Washington she seemed to tone down a bit her "stock picking" comments, but she nonetheless commented on the general valuation of the US stock market.