Category Archives: Price Mechanism

Reswitching, relative prices and linearity

Posted on August 7, 2011 by

Ok so only 1000 people in the world understand this and only 10 care about it: economics for the most part has long since given up its empirical pretensions when it comes to its ontological assumptions.  Still I suspect the … Continue reading →

More Galleries | | 4 Comments

Effecient Market Hypothesis: 40 Years of Confusion

Posted on March 11, 2011 by

I just finished reading a commentary by Bernard Guerrien and Ozgur Gun entitled Efficient Market Hypothesis: What are we talking about? . Inter alia the authors do an efficient job (as in 12 pages) not at demolishing the efficient markets … Continue reading →

More Galleries | | Leave a comment

Mankiw was right, incentives do matter

Posted on October 16, 2010 by

It turns out that Greg Mankiw perhaps was *mostly* right: incentives do matter. To understand to what extent and how far my dear readers you will have to do three things. First you will have to read Mankiws original article … Continue reading →

Posted in Class War, Free Markets, liberal economic theory, Neoclassical, political humour, Price Mechanism, Tax Cuts | 1 Comment

Stiglitz: Capitalism is Characterized by Big Bubbles and more

Posted on February 27, 2010 by

Stiglitz is one of the few (liberal) economists who is not suffering from a massive bought of cognitive dissonance owing to the GFC. This hour long interview with Joseph Stiglitz is well worth watching. Don’t have an hour? Then watch … Continue reading →

Posted in American politics, central banks, Corruption, economic crisis, Finance, Financial Regulation, Free Markets, Gov Debt, housing prices, liberal economic theory, Neoliberalism, Price Mechanism, Profits | 1 Comment

Is there a housing bubble in the works?

Posted on November 25, 2009 by

Scotiabank hints at housing bubble “Canadian house prices are rich no matter how one looks at it,” Scotia economists Derek Holt and Karen Cordes said in a report titled Is There a Canadian Housing Bubble? Of the many ways of … Continue reading →

Posted in central banks, economic crisis, Free Markets, Price Mechanism | Leave a comment

Selected Central Government Debt Ratios: An image begs a thousand questions

Posted on November 24, 2009 by

When discussing with my undergrad students why I thought Japan Inc. was bust I trotted out the graph below.  However, this morning while looking at the graph several questions came to mind. 1) From 1998 – 2008 what was average … Continue reading →

Posted in Canadian Politics, central banks, economic crisis, Free Markets, liberal economic theory, Neoliberalism, Price Mechanism | Tagged , , , , , , , | Leave a comment

We do not do spin…We don’t lose our focus: Carney the rain maker

Posted on October 22, 2009 by

Listening to Mark Carney talk tough is like watching Stephane Dion pound his fists on the table.  Well ok a little more credible than that.  Being a former GS man you know he knows people who know people.  Some of … Continue reading →

Posted in central banks, Exchange rates, Neoliberalism, Price Mechanism, unemployment | Tagged , , , | Leave a comment

Ontario Minimum Wage: Classic Arguments Against

Posted on March 30, 2009 by

I am not going to wade into the debate on whether the scheduled rather modest minimum wage increases in Ontario are a good thing.  I will, however, with pleasure reproduce this comment by a compassionate petty-proprietor over at the Star: … Continue reading →

Posted in humor, Price Mechanism, Small Business | Tagged , | 10 Comments

Brad Delong is Wrong

Posted on March 28, 2009 by

It would appear that Brad Delong is the only prominent independent “liberal” economist (that is not on the Obama bank role) that is willing to shill for the Geithner-Obama cash for trash program.  All the liberal Nobel (in memorial) Laureates … Continue reading →

Posted in central banks, Corruption, Free Markets, Neoliberalism, Price Mechanism | Tagged , , , , , | Leave a comment

And finally an Economist hits it right on the head

Posted on February 26, 2009 by

Robert Waldmann over at Angry Bear hits the ball right out of the park with “Price Revelation” is Mysticism. The post covers so much ground with implications so counter to the grain (too bad he does not take them beyond … Continue reading →

Posted in Neoclassical, Neoliberalism, Price Mechanism | Leave a comment