by Andreas Hoffmann Ever since the beginning of the EMU crisis, politicians, journalists and economists have blamed Germany’s "fiscal austerity" for the prolonged troubles in Europe’s periphery. If only the Germans spent more on goods and services, so the idea, the people in the periphery countries of Europe could sell more stuff. Exports would help … Continue reading The Germans Have Learned Nothing
by Roger Koppl I do not understand why so many pro-market commenters are opposed to extending unemployment relief. The supposedly killer, knockdown, unanswerable argument is that unemployment relief encourages unemployment. Hospital emergency rooms encourage drunk driving. Should we therefore close hospital emergency rooms? Those of us in the Austrian school of economics keep saying, and … Continue reading Emergency Rooms Just Encourage Drunk Driving
by Mario Rizzo I have been arguing for some time, both here and elsewhere, that the ideas of John Maynard Keynes after the mid-1930s and into the 1940s are more sophisticated that the prime-the-pump notions of many modern day economists who call themselves Keynesians. Keynes, himself, evolved away from those simple ideas he advocated … Continue reading Keynes: Stimulus Follows Stability and Not Vice Versa
by Mario Rizzo In the last forty-five years, I am told by macroeconomists, there have been many advances in macroeconomic theory. Let us grant this. Then why is the Keynesian policy position – putting relatively small differences among proponents aside for the moment – more or less the same as when I was an … Continue reading Progress in Macroeconomic Policy?
Chidem Kurdas We have an exact measure of the most recent recognition lag. This month the National Bureau of Economic Research identified the beginning of the current recession as December 2007. So the lag is about a year. Click for NBER You’ll recall that in the 1950s Milton Friedman pointed to the time it takes economists … Continue reading Why Not A Big Tax Cut?