tag:blogger.com,1999:blog-6837159629100463303.post4126435524616477115..comments2023-06-18T01:25:08.748-07:00Comments on Information Transfer Economics: Will the UK be the first to exit the Great Recession?Jason Smithhttp://www.blogger.com/profile/12680061127040420047noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-6837159629100463303.post-32539794967560226592015-05-12T13:08:07.546-07:002015-05-12T13:08:07.546-07:00Additional link of interest:
http://equitablegrow...Additional link of interest:<br /><br /><a href="http://equitablegrowth.org/2015/05/12/department-huh-noah-smith-claims-british-economy-today-not-keynesian-slump/" rel="nofollow">http://equitablegrowth.org/2015/05/12/department-huh-noah-smith-claims-british-economy-today-not-keynesian-slump/</a>Jason Smithhttps://www.blogger.com/profile/12680061127040420047noreply@blogger.comtag:blogger.com,1999:blog-6837159629100463303.post-63282592899213216222015-04-06T14:22:02.727-07:002015-04-06T14:22:02.727-07:00That is one way -- it leads to a world where there...That is one way -- it leads to a world where there is high inflation/high NGDP growth for a while (k ~ 0.5) that falls over time until it reaches k ~ 1.0. That makes for a strange inter-generational effect, though ... people born at the beginning of each cycle would see more growth (stock markets would make higher returns, their wages would rise faster) than at the ends.<br /><br />Think college students from the 1960s (debt easily paid off by increasing wages) vs college students today (crippled with debt because of low wage growth). There could be some optimal path calculated using the interest rate model to make interest rates offset the effect ... students from the beginning part of the cycle pay higher interest rates than from the end. You could adjust fiscal policy to tax gains more during the beginning of the cycle than during the end ... (seems hard to justify politically -- why does one generation have to pay higher tax rates than another?)<br /><br />Overall the idea is still speculative, but it is useful to think about the various consequences ...Jason Smithhttps://www.blogger.com/profile/12680061127040420047noreply@blogger.comtag:blogger.com,1999:blog-6837159629100463303.post-73117608624137088402015-04-04T12:39:36.718-07:002015-04-04T12:39:36.718-07:00Very cool! The possible implication is that centra...Very cool! The possible implication is that central banks and economic policymakers should be targeting information transfer indices via inflation and monetary base adjustments.Todd Zorickhttps://www.blogger.com/profile/10976192775890569092noreply@blogger.com