Sunday, March 13, 2016

On the blogs

The Benefits of Free Trade: Time to Fly My Neoliberal Freak Flag High! -- Brad DeLong sides with Krugman on the benefits from trade. He cites the Heckscher-Ohlin model basically, and I explain here the limitations of that model based on the capital debates (the Ricardian model is at least logically consistent, but also ultimately does not explain trade patterns)

The Mundell-Fleming Model and Republican Economics -- Pro-Growth Liberal (PGL) at Econospeak, in an older post, notes that GOP candidates are more likely to be 'protectionist' than Democrats (yes, I know, it's about managed trade, not protectionism). At any rate, true about Trump, not the others necessarily. And incorrect on Bernie. PGL thinks that fiscal and monetary expansion would work with a devalued dollar and stronger exports (he should abandon the Mundell-Fleming model)

Senator Sanders and Financial Regulation -- Menzie Chinn on the positions of several politicians on financial regulation. Not sure Hillary would be better. Mind you, I'm not for an audit of the Fed, I think that Dodd-Frank does not go far enough, and that TARP was flawed and something like the Swedish nationalization of the banks in the 1990s should have been the solution. Bernie might have a learning curve on this, but he's not in the pocket of Wall Street, like some other candidates (wink, wink, nudge, nudge)

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