Do we see here the limits of central planning?! An approach which will sooner or later end up in tremendous misallocation of economic resources?Keywords: China, Central Planning, Misallocation of Resources, Limits of Central Planning more »
David Wessel about the dilemmas faced by the Eurozone:
Taylor Rule
Unit labor cost differences
WSJ: Euro Zone Confronts Limits of 'One-Size-Fits-All' Policies, by David Wessel, March 17, 2011
Keywords: Eurozone, Euro Crisis, Unit Labor Costs… more »
Following graph lately circulated in the economic blogosphere. It is from the weblog of Stanford's John B. Taylor and shows that the most effective way to reduce unemployment is to raise investment as a share of GDP.
In contrast, Taylor shows that… more »