Fear of Boom and Bust

Here's a new rap video that is a very good summary of the ongoing debate in economics between Hayek and Keynes.

Be Careful What You Hear From Economists

William Easterly blogs about the problems in reporting poverty in the world citing American Economic Association Presidential address given by Angus Deaton. I was able to attend this presentation in Atlanta and it was enlightening to say the least.

Becker et al Weigh in on Slow Recovery

Uncertainty and the Slow Recovery.

I Resemble This Article

While sitting in the airport this morning waiting for a plane to go to Atlanta for the American Economic Association Meetings, I read this article which explains why economists book their conference the first week of the year: it's cheap.

I think my wife would agree that some of the things in this article are not hyperbolic. In particular, the following describes our recent experience pretty well:

"When my wife buys a car, she seems to care what color it is," he says. "I always tell her, don't care about the color." He initially wanted a gray 2007 Mercury Grand Marquis, but a black one cost about $100 less. He got black.'

(Just substitute Mercury Grand Marquis with Honda Civic and the word black with gold)

For the record I am not as bad as some economists: I would neve sell my children even if I knew they wouldn't be worth more in the future.