Anyone who has taken ECON1000 has probably seen the simple model of how banks create money in a fractional-reserve banking system, and how an increase in reserves creates a multiple expansion of loans and the money supply. An alternative approach,...

Who makes sure the long run consolidated government-central bank budget constraint balances? Is it the government? Or is it the central bank? The former gives us a Ricardian regime; the latter gives us fiscal dominance. Most macroeconomists take a...

I went. And apparently it's being sold as a Big Deal; here's the speech. Here are the points I was curious about last week: Is this a real policy proposal, or a recital of Conservative failures? A healthy dose of the latter, and some generalities. No...

Ed Broadbent had an op-ed in Tuesday's Globe on a plan to reduce child poverty, and he offers this proposal: In the next budget, let's impose a six-point increase in income tax on those earning more than $250,000 a year (whose average taxable...

Similarities: S1. Both do general equilibrium analysis, trying to understand the interaction between parts of a whole system, with lots of positive and/or negative feedback loops. S2. Both have got time-series data that show how different...