The past weeks have seen a shift in Western involvement in the war between Ukraine and Russia. In a dramatic U-turn, Germany, the US, and the UK massively upgraded their military assistance to Ukraine, agreeing to send the country 100 tanks on top of billions in war aid. While Germany’s foreign minister admitted for the first time: “We are fighting a war against Russia”. Meanwhile, DiEM25’s Yanis Varoufakis was in Cuba, where he delivered a speech arguing for a very...

I denna nyutkomna bok presenterar Mikael Priks och Jonas Vlachos — professorer i nationalekonomi vid Stockholms universitet — en genomgång av viktiga metoder ekonomer har till sitt förfogande för att göra empiriska analyser av stora och aktuella samhällsfrågor. Med utgångspukt i ekonometriska och statistiska modeller diskuterar man vilka olika identifikationsansatser  som används för att undgå olika former av ‘selektionsbias’ när ekonomer försöker utröna kausala...

This post begins the presentation of an example in which extensive and intensive rent can both arise. I do not consider external intensive rent or joint production in general. Kurz and Salvadori (1995), in section 2.2 of Chapter 10, have a more general model that includes external extensive rent and joint production. It does not allow for more than one agricultural commodity, although they treat that in problems, with examples from the literature. Perhaps developing this example will help...

What’s fair is fair: The PRC issues a final order on the “appropriate share” issue, Save the Post Office, Steve Hutkins Another one of the posts by Steve Hutkins about the USPS. The effort by commercial interests to get the USPS to increase pricing has been going on for years. At the bottom, I have attached a post by Mark Jamison (“When Titans Collide: UPS petitions the PRC to change USPS costing methodologies”) detailing the efforts of UPS to get...

Biggest joke of the century

The money multiplier – neat, plausible, and utterly wrong The mainstream textbook concept of money multiplier assumes that banks automatically expand the credit money supply to a multiple of their aggregate reserves.  If the required currency-deposit reserve ratio is 5%, the money supply should be about twenty times larger than the aggregate reserves of banks.  In this way, the money multiplier concept assumes that the central bank controls the money supply...

Blog Beyond outrage When the government thinks it can win votes by thinking up ever more cruel ways to treat people trying to make the UK home, how do we fight back? By Nadia Hasan 06 February 2023 This is an article from the fifth issue of the...

Geopolitics, the global economy, and the future. Longish but important. Brave New WorldJeffrey D. Sachs – The New GeopoliticsJeffrey D. Sachs | University Professor and Director of the Center for Sustainable Development at Columbia University, where he directed The Earth Institute from 2002 until 2016. He is also president of the U.N. Sustainable Development Solutions Network and a commissioner of the U.N. Broadband Commission for Development. He has been adviser to three United Nations...

Well, things are getting interesting in the US. The Federal Reserve started hiking interest rates in April 2022 and its decisions are underpinned by an theoretical framework that suggests the unemployment rate is below what it thinks is the natural rate (the rate where inflation is stable). So the rate hikes are meant to slow spending and increase the unemployment rate and cause price setters to stop accelerating prices up. Except the data isn’t obeying the theory and inflation is falling...

– Sandwichman @ Econospeak The Unbearable Tightness of Peaking Sandwichman came across a fascinating and disconcerting new dissertation, titled “Carbon Purgatory: The Dysfunctional Political Economy of Oil During the Renewable Energy Transition” by Gabe Eckhouse. An adaptation of one of the chapters, dealing with fracking, was published in Geoforum in 2021 As some of you may know, the specter of Peak Oil was allegedly “vanquished” by the...