Obviously this isn’t fun for those going through the process but for us outside observers it is rather amusing – it’s the remnants of Ottoman Empire law which determine the status of the (ex-) wives of those Israelis who died in the Ethiopian Airlines crash of that Boeing 737. This really isn’t how we’d think of such things in this modern world. The Ottoman Empire died in 1920 or so, it stopped ruling what is now Israel about then but the law, in its majesty, keeps rolling along.…See More
A reasonable – and as yet unproven – theory for the Ethiopian and Lion Airlines crashes of the Boeing 7373 Max aircraft is something wrong with the autopilot or flight control software. The specific point being that to lengthen the aircraft is to change flight characteristics and did the software upgrade change sufficiently to cope with that?
This is from The Conversation and is obviously preliminary.…See More
Ricardian equivalence is the idea that if we cut taxes now in order to boost the economy then this doesn’t make any difference – people will just save to pay the taxes they know will rise in the future. For this to work we’ve got to show that people respond to future tax rises. Which, it appears, they do.
The interaction of household finances and unconventional fiscal policy
Scott Baker, Lorenz Kueng, Leslie McGranahan, Brian T.…
It’s not necessary to entirely agree with this analysis to grasp and agree with the underlying point being made. It was the structure of the banking system, not the existence of bad actors within it, which led to the crash and thus recession. I’d definitely not agree with the solution either:
The Big Con: Reassessing the ‘Great’ Recession and its ‘fix’
Laurence Kotlikoff 28 November 2018
The general consensus on what caused the Great Recession can be summed up as “bad banks full of bad bankers did bad things”.…See More
The Observer’s business editorial really outdoes itself today with two fallacious claims about bank lending and recessions, crashes and even the Great Crash. It manages to make the opposite statement to the one they normally complain about and then also get the cause of and reason for that Crash wrong.
… See More
They wanted companies to borrow and grow, but not like this. Last week, this concern was visible in the minutes of Bank of England’s financial policy committee.
We’re bombarded with claims that quantitative easing has only benefited the rich. Asset prices have risen, that’s all that’s happened, why are we bailing them out an thereby increasing inequality? That not actually being what has happened:
Household heterogeneity and the transmission of monetary policy in the euro area
Miguel Ampudia, Dimitris Georgarakos, Michele Lenza, Jiri Slacalek, Oreste Tristani, Philip Vermeulen, Gianluca Violante 13 August 2018… See More
In one world, the problems of 2008 were fixed, the emergency monetary policies were heroic, poverty and unemployment levels are unremarkable, Clinton lost because of sexism/Russia, economic performance is strong, race relations are improving, immigration is beneficial, crime levels are falling, and the multicultural dream is coming true before our eyes.
In this world, Russia invaded Ukraine, the Saudis are our good friends, the EU is a group of clever democrats running a peaceful and noble enterprise, the independent media is a collection of racist homophobes, the intelligence services do their best to remain objective, the politicians battle to hold corporations to account, Obama was the greatest President for a generation, and central bankers are patiently restoring order – any talk of an economic and societal collapse is fake news, as the geopolitical tensions are unrelated and any suggestion that they are being engineered is a tinfoil hat conspiracy theory.…See More
We’re not great fans of macroeconomics around here, being of the opinion that this is the half of the subject we know humans are wrong about. Still, it’s worth keeping an eye on what’s being said over in La La Land simply because so many politicians believe this stuff.
At which point Paul Krugman’s new paper. Which could, possibly should, be summed up as “Told Ya So!” Reasonably fairly in fact, because he did rather predict what would happen, before it happened, during the crash.…See More