ALL BLOG POSTS
I am deeply skeptical about how much we can learn from econometrics, but if you do it right doing econometric studies can sometimes be an worthwhile effort.
Michael Darda is not only a nice guy - he is also clever. But frankly speaking it is a bit boring always being in agreement with him.
This week investors have been spooked by the election outcome in Italy, but frankly speaking is there anything new in that shady characters are doing well in an Italian election? Is there anything new in a hung parliament in Italy? Nope, judging from post-WWII Italian political history this is completely normal. Ok, Italian public finances is a mess, but again that not really news either.
I stole this from Scott Sumner:
This is what Bernanke could (or rather should) say about Italian events:
This is from CNBC:
Working paper of the day - Straumann et al on Switzerland, the Great Depression and the gold standard
A couple of weeks ago I came across a great paper by Peter Rosenkranz, Tobias Straumann and Ulrich Woitek - "A Small Open Economy in the Great Depression: the Case of Switzerland". It is great paper. Here is the abstract:
UPDATE: I have edited my post significantly - I misread what Scott really said. That is the result of writing blog posts very early in the morning after sleeping too little. Sorry Scott...
One of the unfortunate consequences of this crisis is increased political backing for "reforms" that have negative impact on aggregate supply. In the US in the 1930s it was the horrible National Industrial Recovery Act (NIRA) and in today's US it is higher minimum wages. I find it incredible that anybody seriously would question the negative supply side consequences of higher minimum wages. This is not a political issue, but a simple question of understanding the laws of supply and demand.