Assume that generally MV=PY, where M is money supply, V is velocity of money, P is the price level, and Y is real GDP. Now assume that we have a bitcoin currency with a fixed money supply (M) and the velocity of money (V) is also constant. If real GDP (Y) increases, the only way… Continue reading Bitcoin + Growth = Deflation
Category: Economics
Policy Shop: Job Training Is Not the Answer
New post at Policy Shop. Excerpt: You cannot fix a problem caused by there not being not enough available jobs by training people to do jobs. It won’t work. To be sure, it would help some people get jobs in areas where there not enough workers with the right skills, given that many employers say… Continue reading Policy Shop: Job Training Is Not the Answer
Why I Tend to Disbelieve Employers
So some employers say that they cannot find qualified workers. Maybe that is the case in some situations, but there is a basic problem with the notion that this is holding things back. That basic problem is that if you cannot find qualified workers, you can find unqualified workers and make them qualified. If there… Continue reading Why I Tend to Disbelieve Employers
Let’s start at -0.1
Steve Waldman and Garrett Jones are having an interesting back and forth over at interfluidity and econlib. It’s about optimal tax rates for capital income and labor income. Jones is a big fan of the Chamley-Judd view that capital income should be taxed at zero. Waldman is not, or more accurately, he thinks the Chamley-Judd… Continue reading Let’s start at -0.1
Yglesias and Ackerman in violent internet fight
Matt Yglesias had a post about left economic mistakes a few days ago. I responded in turn, focusing only on how it is completely legitimate to be worried about productivity-enhancing layoffs that happen within a social structure that does little to ensure those laid off continue to do well. I argued that Yglesias hastily concluded… Continue reading Yglesias and Ackerman in violent internet fight