Alan Meltzer’s straw “Keynesian”

Remember when “liberal” became the insult of choice among Republicans? Apparently, “Keynesian” has now taken on that status for Republican economists.  Never mind that Keynesian is ill-defined (old Keynesian?  new Keynesian?  the Keynesian part of the neoclassical synthesis?)–making Keynesian a dirty word and applying it to those with whom you disagree has become the tactic … Read moreAlan Meltzer’s straw “Keynesian”

See no evil, hear no evil, and, if you are a ratings agency, speak no evil

You don’t have to look too far to find nutty policy proposals. One of my favorites is  Herman Cain’s suggestion that Congressional bills be limited to no more than three pages. Another, reported in recent days by both the Financial Times (which claims to have seen an actual draft) and the Wall Street Journal, is the … Read moreSee no evil, hear no evil, and, if you are a ratings agency, speak no evil

Prize (for a) failure

British clothing retailer Simon Wolfson (known to his friends in the House of Lords as Baron Wolfson of Aspley Guise) announced several days ago the establishment of the Wolfson Economics Prize (read the press release here).   The prize, worth a cool £250,000 (about $400,000)–second only to the Nobel Prize in Economics, in terms of … Read morePrize (for a) failure

John Cogan and John Taylor confuse temporary and permanent

In a recently published op-ed piece in the Wall Street Journal, Stanford economists John Cogan and John Taylor argue that: “Temporary, targeted tax reductions and increases in government spending are not good economics. They have repeatedly failed to increase economic growth on a sustainable basis. What may come as a surprise is that such policies … Read moreJohn Cogan and John Taylor confuse temporary and permanent