Just so we are clear...

This pretty much sums it up on deflation.

Economists have it easy (I assume... or so my model tells me)

This quote, by a prominent (albeit rather heterodox) development economist, also has a shorter rendering that makes sense in light of Ben Atnipp's post: "an economic transaction is a solved political problem".

Resolutions for the WTO

Per liberi comercii, libertas

Lexington Virginia USA

December 2014

Be it resolved in this plenary session of the Whirled Trade Organization (heretofore WTO) convened in Lexington, Virginia, USA, that:

I>        Agricultural products and automobiles, and all materials involved in the production of agriculture or automobiles, shall be traded freely, without prejudice to country of origin. 

II>       No member nation of the WTO shall impose non-tariff barriers (NTBs) to trade on products in the areas of agriculture, automobile production, or finance. 

III>      NTBs in the areas of agriculture that are prohibited include, but are not limited to, restrictions on genetically-modified organisms (GMOs) and any other production processes that are not demonstrated to be unsafe for human consumption.

           

IV>       In the interest of free trade and competition, no member nation shall provide direct subsidies or financial support to the agricultural, automobile, or financial industries.  

V>       No member nation of the WTO shall place restrictions on capital investment flows into or out of their country. 

VI>     All member nations of the WTO shall allow currency exchange rates to be determined by market mechanisms.

           

VII>    All member nations hereby commit themselves to furthering the goals of universal free trade in all goods and services by the year 2020.

Collective action problem

Question of the day: Can I be bothered?

Today's illustration of the Tragedy of the Commons

Remember this guy? (Colbert does.)

Posted without comment

Ha!

Vermonters just don't buy it when Virginians claim...

U.S.-China climate deal (!?)

Big news (maybe) yesterday about a potential U.S.-China climate deal. Interesting to see how what was seen as an irreconcilable difference has suddenly been turned on its head (somewhat). So why the (doubt-laden) parentheticals?

Well, not everyone thinks the deal is worth the recycled paper it's printed on. And they have something to say about it.  

Implications of Low Inflation for Monetary Policy (Eric Rosengren, Pres., Boston Fed)

Here is a link to the speech and the materials from yesterday's lecture.

Bailouts, crises, and ... DUDE.

This one is for those of you who find yourself getting too sympathetic with the overextended borrowers of the world.

Republican Majority and Official Obama Lame Duck Period

What do you think? Open thread here.

Feel free to post in comments

Krugman apologizes and admits he was wrong!*

* - sort of.

He says he's mostly right, but was once (sort of half-)wrong a while ago in ways that prove he's even more right now.

Brazil and the markets

I vividly remember being in Brazil when Lula (the previous president, and a former leftist) was inaugurated. One of the first things he announced: he would be raising the budget surplus target in the first year of his presidency - I believe from 3.75% to 4.25%. The idea was that the former Marxist president as first action wanted to send a clear message to international capital: We are going to be fiscally conservative.

On a similar note, see Lindsey's recent post, and now note this from today. Note that this is a monetary rather than a fiscal move, but the effect (or at least the intended effect) is very similar.