Wednesday, October 06, 2010
The other day I was giving a lecture on economic policy at a well-known British independent school. I argued that an easy way of increasing total spending was for the government to issue every household with a time-limited voucher, e.g. £100 to be spent within a month. A bright student from Hong Kong then asked the following question, “If the receiver of the voucher was rational, she would realise that her taxes would have to go up by £100 in order to finance the voucher, so she would spend the voucher but increase her saving by £100. Wouldn’t this mean that no extra spending would be generated by the issue of the vouchers?”
After the lecture I gave the question to two economics graduates:
(I) Question: why would people spend theirContinue reading...
Welcome to my blog
Tuesday, September 21, 2010
Welcome to my blog! This is the place where I will be posting my ideas about the current economic crisis and many other things. I welcome your feedback.
I recently read a brilliant book by Ha Joon Chang called 23 Things They Don't Tell You About Capitalism. See my review in the New Statesman of 30 August and also on this website: http://www.skidelskyr.com/site/article/for-a-new-world-new-economics/
. I’m working up a talk or column on ten fallacies in arguments for slashing the deficit currently doing the rounds of politicians and analysts. Can anyone provide a direct quote of a recent idiocy on this subject? I am compiling a list and would be exceptionally grateful for a contribution. Will keep you up-to-date with results. Here’s a