Friday , November 22 2019
Home / Tag Archives: economic policy

Tag Archives: economic policy

Cum/ex

Looking for a different story in the business pages of The Guardian, I happened across a headline stating The men who plundered Europe’: bankers on trial for defrauding €447m. That attracted my attention, but the standfirst, in smaller print, was even more startling Martin Shields and Nick Diable are accused of tax fraud in ‘cum-ex’ scandal worth €60bn that exposes City’s pursuit of profit For those without a calculator handy, that’s about $A100 billion. I think of myself as...

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A nuclear grand bargain ?

I wasn’t expecting much of a reaction to my submission to two Parliamentary inquiries into nuclear power, in which I advocated imposing a carbon price (set to rise to $50/tonne over time) and, conditional on this, repealing the existing legislative ban on nuclear power. Over the weekend, though, I heard that Aaron Patrick of the Fin was asking a few people about it. Given my past history with Patrick, I was expecting a gotcha hatchet job, or worse. When today’s Fin came out, I...

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Bill Mitchell — The adult unemployment benefit in Australia should be immediately increased by $A200 per week

At present, the Australian Parliament is debating whether the unemployment benefit (called Newstart) should be increased. The conservative government is refusing to budge claiming it prefers to create jobs and get people of benefits – arguing that it will generate 1.25 million jobs over the next 5 years. The Opposition Labor Party are attacking them for being mean but are just rehearsing the massive hypocrisy that has defined that party since it became a voice for the ‘neoliberal lite’...

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Opportunity cost, MMT and public spending (crosspost from Crooked Timber)

I’ve been busy for the last week doing events for Economics in Two Lessons, so I didn’t have time to take part in the discussion arising from Harry’s post on alternatives to Sanders’ proposal to wipe out college debt. In one way, that’s a pity because the key point of the book is the idea of opportunity cost – the true cost of anything, for us as individuals, and for society as a whole, is what you must give up to get it. More precisely, it’s the best alternative available to us....

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Bill Mitchell — Talking of elephants–plain old, garden variety fiscal policy

If there were two lessons that can be taken from the GFC among others then we should know, once and for all, that, first, monetary policy (in all its glorious forms these days) is not a very effective tool for influencing the level of economic activity nor the price level, and, second, that fiscal policy is very effective in manipulating total spending and activity. Of course, those lessons provided the evidence that turned macroeconomics on its head because for several decades, as the...

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Coming events

I’ve got quite a few events coming up in the next couple of weeks.* On 13 and 14 May, I’m running a workshop at the University of Queensland on Epistemic & Personal Transformation:Dealing with the Unknowable and Unimaginable. Details here.* On Thursday 16 May, I’ll be at ANU for the official Australian launch of Economics in Two Lessons.  Details are here. If campaigning permits, Andrew Leigh will say a few words about the book. There will be a launch at Avid Reader in Brisbane...

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How much will it cost to deal with climate change? Not much at all

That’s the headline for my latest piece in Inside Story, along with the short version of my answer. The long answer is that, even with dubious modelling choices and extreme parameter assumptions, Brian Fisher of BAEcon* comes up with estimates of about 2 per cent of GDP, trivial compared to the potential cost. So, he uses the same presentational trick he’s been using since the first ABARE modelling exercise back in 1996, turning an annual flow into a present value over ten years to...

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Shorten gets opportunity cost right

The concept of opportunity cost “The opportunity cost of anything of value is what you must give up so that you can have it.” is the central theme of my book Economics in Two Lessons, due out in the US on 19 April and hopefully in Australia soon after that. My central claim is that two lessons based on opportunity cost and their relationship to market prices provide a framework within which almost any problem in economic policy can usefully be considered. That’s not the way...

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