Relevant and even prescient commentary on news, politics and the economy.

Economics of contempt on CDS

I am flattered that the economic of contempt guy* wrote me a long e-mail about my last CDS post. The e-mail is after the jump. my comments on his comments in [brackets] I am flattered by the attention. Really, I stress, I only recently learned what a CDS is. I wanted to respond to your […]

Chinn and Thoma hit it out of the park

Robert Waldmann Thinks that this post by Mark Thoma discussing this Post by Menzie Chinn is unusually excellent. I suggest you go read it. If interested my thoughts on it after the jump. ideology. Its just not done to write that the debate is ideologues on one side non-ideologues on the other. In fact, he […]

Salmon and Barnett on the $500,000 limit

Robert Waldmann jumps into a conversation between Felix Salmon and Megan Barnett on limiting banker compensation. after the jump my comment which is addressed to Salmon. I don’t think that you’re surprised that I agree with you and disagree with Barnett. I’d say a strong argument for the cap is the good old moral hazard […]

Responding to Kling responding to me.

Robert Waldmann responds to Arnold Kling’s response Arnold Kling was generous enough with his time to respond here to a post of mine Sorry I was AWOL. Thank you Arnold Kling for responding to me. I’m flattered. “Not quite. The more heterogeneous labor force does not necessarily raise the natural rate of unemployment. However, it […]

CDS again

Robert Waldmann People are talking about regulating credit default swaps (CDS) . They include Collin Petersen D-Minn who proposes making it illegal to own a CDS without owning the underlying instrument (this is absolutely standard for other kinds of insurance). and George Soros who supports the proposal.(via Felix Salmon) A problem, I think, is that […]

Half Full or Half Empty ?

Robert Waldmann has been rather harsh on efforts to base macroeconomics on models of rational forward looking utility maximisers in Nash or Walrasian equilibrium recently. One might almost think that I agree with my PhD supervisor Larry Summers who once said and I quote from memory (but believe me the words had enough of an […]

Welfare Reform Not a Disaster ? Part II

Robert Waldmann I argued that the conventional view that welfare reform was a success is based on the coincidence that the economy boomed right after welfare war reformed, the journalists stopped paying attention, not noticing the following increase in severe poverty during the Bush non boom. Now we are in a severe recession. How is […]

Mundell Fleming Muddle ?

Robert Waldmann Wow an argument in favor of protection from Paul Krugman. I never expected to read that. Now he’s against protection all the same, but he does admit that there is a good argument that right now a bit of protection would be good for the world. The argument, basically, is that governments aren’t […]

Name Dropping

Paul Krugman writes about “Vanishing Dark Matter.” Robert Waldmann waxes nostalgic. Ah memories. Brad DeLong and I recall an impromptu debate on dark matter at 1050 Mass ave (NBER) featuring Paul Krugman and Larry Summers (apparently just back from advising Dukakis — some memories aren’t as pleasant as others). googling (krugman, summers, nber, … “anything […]

comment on Ambrosini

Robert Waldmann Following a link e-mailed by Ken Houghton I read this at “the Ambrosini critique” (thanks Ken) I read The need for more math is also related to the increase in the empirical relevance of theory. I’m convinced the only standing legacy of the Real Business Cycle literature, besides method, is its insistence on […]