As I know a thing or two about helicopter money, I like to help out when people have misconceptions about it. American economics professor Brad DeLong recently accused Claudio Borio, Piti Disyatat, Anna Zabai of manufacturing objections against helicopter money on his blog and on Twitter. I reacted to the tweet of DeLong, pointing out that Borio et al. had raised a valid point.
When I checked back to see if DeLong had replied, it turned out that he had blocked me. As I am new to Twitter, I thought that maybe I was blocked because DeLong received too many messages from me.
Continue reading “Manipulating Brad DeLong suffers from status anxiety. Sad!”
Helicopter money (HM) is money printed by the central bank that is given to the people. Figuratively speaking, Mario Draghi would fly over the Eurozone and drop new €50 bills out of a helicopter to the population below. In the first part of this series, I explored the possible sources of HM. The current post looks at the political constraints that prevent the ECB from firing up the engines of its helicopters. Continue reading “Helicopter money part II: politics”
Scientists build models that capture the essence of some observed phenomenon. The models that I like best are strongly simplified. This in contrast to very complex and non-transparent models that try to replicate every aspect of reality. Good models allow us to gain insight into something we observe by using a limited number of key concepts. I use simple models to be explicit about the underlying assumptions and to be consistent. Continue reading “My favorite type of model”
I was doing some research for a post about how the Trump presidential candidacy exposes the political biases of economists. But then I came across the blog of Scott Sumner. Professor Sumner has been teaching economics for over 25 years. Mr. Sumner is an advocate for a monetary policy called NGDP targeting. He also hates Donald Trump.
What I found stunning while reading Dr. Sumner’s articles are not his political views, but rather how poor his understanding of financial economics really is. As an exercise, I recommend that you take a look at these three articles. Can you identify his implicit assumptions and outright false claims? Continue reading “Quiz: Can you spot the economic errors of Scott Sumner?”
I had a new KBC experience today, after being a lifelong customer and having worked for 5 years at the bank-insurance group. This time not as a client or as an employee, but as a (co-)owner of the company. The annual general meeting of shareholders was organized in the company’s Molenbeek headquarters this morning. Continue reading “The annual general meeting of KBC”
Na levenslang klant te zijn bij KBC en er 5 jaar gewerkt te hebben, ben ik sinds vandaag een KBC ervaring rijker. Niet als klant of medewerker, maar als eigenaar. Deze morgen ging namelijk de jaarlijkse algemene aandeelhoudersvergadering door in Brussel. Continue reading “De jaarvergadering van KBC”
The recent terror attacks by Islamic State (IS) in Brussels and Paris have shown once more that the terrorists are willing to sacrifice themselves for their cause. After the suicide bombings in Brussels, IS has threatened that more attacks will follow.
By doing this, they are following a strategy that is as old as the hills. Continue reading “Does the Islamic State employ classicists?”
De recente aanslagen door Islamitische Staat (IS) in Brussel en Parijs hebben nog eens aangetoond dat de terroristen er niet voor terugschrikken zichzelf op te offeren voor hun zaak. Na de zelfmoordaanslagen in Brussel heeft IS gedreigd met nieuwe aanslagen.
Ze volgen hiermee een strategie die zo oud is als de straat. Continue reading “Latinisten onder de terroristen”
Historische analogieën zijn nuttig omdat heel weinig politieke, sociale of economische problemen nieuw zijn. Het probleem is dat het gemakkelijk is om een gebeurtenis uit duizenden jaren geschiedenis te kiezen die in je kraam past. Daarom moet je altijd in het achterhoofd houden dat hedendaagse omstandigheden nooit 100% overeenkomen met het verleden. Het is echter interessant dat gelijkaardige verhoudingen en gevoelens tussen individuen en groepen altijd terugkomen. Hierdoor gebruiken mensen dezelfde strategieën, onafhankelijk van waar en wanneer ze leven, welke taal ze spreken of welke kleren ze dragen. Continue reading “Historische analogieën”
The reason historical analogies are useful, is because hardly any political, social or economic problem is really new. The problem is that it is easy to cherry-pick some event from thousands of years of recorded history. That is why you always need to keep in mind that no situation will match the past 100%. However, what is interesting is that similar relations and feelings occur time and again between individual humans and groups of people. This leads people to use the same strategies, no matter what time and place they live in, or what languages they speak or what clothes they wear. Continue reading “Historical analogies”