Today, I continue my précis of Henry Hazlitt’s brilliant 1946 book, Economics in One Lesson, with two chapters covering tariffs and the drive for exports. The index page is here. Who’s “Protected” by Tariffs? The Drive for Exports On this subject, see also Razeen Sally’s excellent Trade Policy, New Century: […]
Read MorePost Tagged with: "economics"
The GDP figures: are economists failing the Chancellor?
Today’s GDP figures have made the news through being significantly worse than forecast: there was a 0.7% fall in output compared to expectations of 0.2%. Here’s how the November 2010 forecast from the Office for Budget Responsibility (PDF) compares to the GDP data from the Office for National Statistics (PDF): Here’s how […]
Read MoreThe weather. QE. How can clever people be so wrong?
As The Telegraph reported, in March the Met Office “slightly favoured drier than average conditions for April-May-June”. Yet we’ve had more rain than since records began. How could clever people be so wrong? Famously, the climate is a complex system. The usual example of how small changes in initial conditions can lead […]
Read MoreTwo simple steps to transform the culture of banking and to forestall the next outrage
It’s time to privatise commercial risk in banking and insist on prudent accounts. Government should: Eliminate moral hazard from the financial system by implementing this measure to make bank directors strictly liable without limit and to treat as capital both directors’ personal bonds and, for five years, the bonus pool. Introduce […]
Read MoreLow rates and the damage they are doing to the economy and society
Via Another “Operation Twist” will cause more damage to the economy » The Cobden Centre, Frank Shostak explains the damage that will be done by further credit market interventions: Last week the US central bank has announced that it will expand its “Operation Twist” program to extend the maturities of […]
Read MoreThe limits to monetary activism are being acknowledged
Via Bank of England’s money printing is putting UK economy at risk – Telegraph: In its annual report, the Swiss-based Bank for International Settlements (BIS) warned that artificially low rates and inflated asset prices could also be holding back growth by masking lenders’ bad debts and deterring them from cleaning […]
Read MoreThe Economist no longer understands “resources”
At The Economist, this passes for sensible comment: The snag with using the ESM is that its firepower is limited to €500 billion (of which up to €100 billion is already earmarked for Spanish banks). By contrast the ECB’s resources are potentially unlimited. Unlimited resources? Magic! Why ever didn’t they say […]
Read MoreSpain and the EU: This can kicking must stop
Again this morning, I see Spain’s bond yields at levels which have sparked warnings, with Italy close behind. Did recent actions achieve anything but ladling more water into the boat? It seems not. The idea that we can all borrow our way to prosperity has run its course. Banks’ excessive […]
Read MoreCrony capitalism is so entrenched, we scarcely even spot it
The Transport Committee met today for an evidence session on low carbon vehicles. It illustrated that crony capitalism is now not merely entrenched and passed over, but borne out of the good intentions of a global regulatory elite. In the first session, we learned that “consumer demand is lagging policy”, […]
Read MoreThe missing link in the professional debate about the economic crisis: production time
Roger W Garrison’s Time and Money: The Macroeconomics of Capital Structure bursts with insight but this from the final chapter could be the missing link in the debate about the economic crisis: [D]oes the existence and variability of production time have a first-order claim on our attention? This is the question […]
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![😡 A wise building site carpenter once said to me,
🗣️”A Labour government is the worst kind of government for the working man [and woman].”
🇬🇧 True then. True today. We battle on.](https://www.stevebaker.info/wp-content/uploads/2024/05/442413775_18432903037051538_3387178564604183858_n-320x320.jpg)
![😡 A wise building site carpenter once said to me,
🗣️”A Labour government is the worst kind of government for the working man [and woman].”
🇬🇧 True then. True today. We battle on.](https://www.stevebaker.info/wp-content/uploads/2024/05/442413775_18432903037051538_3387178564604183858_n.jpg)
