Category Archives: Regulatory Policy

The Raisin Case: A Breeze not a Wind of Economic Freedom

The famous raisin case officially closed last week. As part of an old and ongoing government program to intervene in the raisin market to support the price, the government tried to take raisins away from a California raisin grower, Marvin … Continue reading

Posted in Regulatory Policy, Teaching Economics

A Reawakening of Monetary Policy Research

Last May a group of economists, central bankers, market participants, and financial journalists convened at Stanford’s Hoover Institution “to put forth and discuss a set of policy recommendations that are consistent with and encourage a more rules-based policy for the Federal … Continue reading

Posted in Monetary Policy, Regulatory Policy

The Senate Moves Ahead on a Policy Rules Bill

Today the Chairman of Senate Banking Committee, Richard Shelby, released a draft bill entitled “The Financial Regulatory Improvement Act of 2015” covering a wide range of reforms. Like the widely-discussed House policy rules bill (Section 2 of HR 5018 of last … Continue reading

Posted in Monetary Policy, Regulatory Policy

Witness Allan Meltzer and the Ouija Board Analogy

Last week the Senate Banking Committee held a hearing about monetary reform and the need for “responsible oversight” of the Fed as Senator Richard Shelby, the Committee Chair, put it.  Allan Meltzer was a witness, and I sat next to … Continue reading

Posted in Monetary Policy, Regulatory Policy

Why Did CBO Wait?

Why did the Congressional Budget Office (CBO) wait until now to inform the Congress and the rest of the country about the large negative effects of Obamacare on employment and hours of work?  (See CBO Budget and Economic Outlook pp 117-127). The … Continue reading

Posted in Regulatory Policy, Teaching Economics

The Raisin Reserve: On the Way Out?

For many years I have used the California raisin market as an illustration of the effects of government intervention, even dressing up as a California raisin and dancing, as in the famous advertisement, to Marvin Gayes’ “Heard It through the … Continue reading

Posted in Regulatory Policy

Thanks for the Teaching Moment, Governor

Showing students how to analyze price floors and ceilings with the supply and demand model is an important part of the principles of economics course.  That was the scheduled topic for us in the course today and Governor Jerry Brown … Continue reading

Posted in Regulatory Policy

My Take on the Middle-Out View

Here is my Wall Street Journal column.  If you’re interested in the of path of incomes year by year, the chart below shows real income growth for the 90% and 10% income groups. The data come from Emanuel Saez’s web … Continue reading

Posted in Regulatory Policy, Slow Recovery

Teaching about Ronald Coase and Private Remedies in Economics 1

While reading articles today (NYT, WSJ,…) about Ronald Coase, who died yesterday at the age of 102, I am reminded about how much I have enjoyed over the years explaining his famous ideas to beginning students in my Economics 1 lectures. … Continue reading

Posted in Regulatory Policy

Say No To Macro-Prudential Fine-Tuning

In an article in the Wall Street Journal John Cochrane raises serious doubts about  recent “macro-prudential” policy proposals.   I hope the Fed listens. The Bank of England has already started in this direction with its new Financial Policy Committee planning to … Continue reading

Posted in Regulatory Policy