ARNOLD KLING
August 14, 2011
The Top Political Contributors
August 11, 2011
Gender and the New Commanding Heights
August 11, 2011
Jamie Galbraith Makes an Assumption
August 11, 2011
Macroeconometrics: The Science of Hubris
August 10, 2011
Real and Nominal Bond Yields
BRYAN CAPLAN
August 14, 2011
The Effect of Thumb Sucking on Income
August 12, 2011
The Voice of Cold, Hard Truth to All Would-Be Educators
August 12, 2011
Ability, Morality, and Prosperity: A Paper and a Report
August 11, 2011
The Theory of Time and Frittering
August 10, 2011
Male Variance and the Remnants of the Gender Gap
DAVID HENDERSON
August 9, 2011
Hayek in "Unbroken", Part Two
August 8, 2011
Hayek in "Unbroken"
August 5, 2011
James Bovard on the Peace Corps
August 4, 2011
Summers Way Off on FDR and 1941
August 3, 2011
The "Amazon" Tax
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Trendy? I have not observed this trend at all and hardly think one article makes this trend! Can someone document this trend?
Sounds more like someone looking for a strawman to burn down.
Worstall was indeed looking for a strawman; the article he was responding to was making specific and detailed points about the particular countries Hungary and Poland.
By the way, the excerpt that Bryan has posted is flat out wrong. The issue of the correct exchange rate to unify two economies is, at base, determined by the relative labour productivity of the two economies, since we assume that we are interested in equalising the price of the variable factor of production. However, this would be completely irrelevant if we were wanting to simply compare the sizes of the two economies, for which a PPP rate would be the relevant comparison. Worstall's suggested exchange rate convention would, surely, underestimate the GDP of labour-intensive economies.
The rest of his rant is also pretty weird. Russia and the other Soviet bloc economies did produce GDP numbers, and to try to ignore "population growth and resource extraction" as not being the sorts of things that might have an effect on GDP is bizarre.
Finally, I'd note that Neil Clark's base year for comparison is 1989, in Hungray and Poland. These two countries were both quite substantial borrowers in 1989, and nobody in the international capital markets thought that there was a serious problem with their economic statistics. Soviet statistics were extremely unreliable for most of the Stalinist period, but Hungary and Poland were not Soviet countries and 1989 was not during the Stalinist period.
the problem of the German exchange rate is much more complex. I believe Germany's created major economic problems because they use this bad exchange rate to integrate the East & West. If they had picked a more realistic exchange rate both the old East and West Germany would probably be a lot better off today.