Archive for the Macro Chapter 12 Category

Arguing for Free Trade in a Post-Trump World

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Anti-trade and anti-globalization positions helped elect Donald Trump, and economists’ traditional arguments for free trade are being ignored. In fairness to the anti-traders, the outcomes of extended trade (especially with China) have left many workers in manufacturing worse off. In teaching about the gains from trade, how […]

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Is Keynes New to Canada ?

Margaret Wente’s column today on “A Liberal Landslide? Not So Fast,” defends the performance of the Harper Conservative government from Krugman’s implicit criticism in his “Keynes Comes to Canada” column. She notes correctly that “Mr. Krugman handily ignored the fact that Stephen Harper ran six years of […]

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Krugman Welcomes Keynes to Canada

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Paul Krugman’s column on “Keynes Comes to Canada” is a treasure-chest of Canadian policy issues. His focus is on the Liberal Party’s platform position to run budget deficits for a few years to finance infrastructure investment — “Interest rates are at historic lows, our current infrastructure is […]

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Does Canada Need a Few Small Deficits ?

Chris Ragan has an excellent column – “A few small deficits may actually be just what Canada needs” – in yesterday’s Globe & Mail. [Also excellent because it illustrates most of the key policy implications discussed in Ch 12 (Spending Others’ Money: Fiscal Policy, Deficits, and National Debt) of Macroeconomics […]

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