by At last — the cause of Christmas has been discovered Every schoolboy knows that cash in the hands of the public regularly shoots up at Christmas, goes down in January and shoots up again around the summer bank holiday. Nobody would suggest (not even Professor Friedman, I believe) that the increase in note circulation in December is the cause of the Christmas buying spree. But there is the question that is more relevant to the Friedman thesis: Could the “authorities” prevent the buying spree by refusing to supply additional notes and coins in the Christmas season? Nicholas Kaldor Causality is sure tough to establish, and Granger causality doesn’t (always) deliver. Christmas is something many of us celebrate, but I doubt, as did Kaldor, the cause of it is
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At last — the cause of Christmas has been discovered
Every schoolboy knows that cash in the hands of the public regularly shoots up at Christmas, goes down in January and shoots up again around the summer bank holiday.
Nobody would suggest (not even Professor Friedman, I believe) that the increase in note circulation in December is the cause of the Christmas buying spree. But there is the question that is more relevant to the Friedman thesis: Could the “authorities” prevent the buying spree by refusing to supply additional notes and coins in the Christmas season?
Causality is sure tough to establish, and Granger causality doesn’t (always) deliver. Christmas is something many of us celebrate, but I doubt, as did Kaldor, the cause of it is an increase in money supply …