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
Topics:
Lars Pålsson Syll considers the following as important: Economics
This could be interesting, too:
Lars Pålsson Syll writes The total incompetence of people in charge of the US economy
Lars Pålsson Syll writes Ergodicity — a questionable assumption (wonkish)
Lars Pålsson Syll writes Vägval i finanspolitiken
Lars Pålsson Syll writes Economics — a dismal and harmful science
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 …