Hoisted from Archives from 1982: Letter from Margaret Thatcher to Friedrich Hayek
Lunchtime Must-Read: Simi Kedia and Thomas Philippon: The Economics of Fraudulent Accounting

Noted for Your Lunchtime Procrastination for February 17, 2015

Screenshot 10 3 14 6 17 PMOver at Equitable Growth--The Equitablog


Must- and Shall-Reads:

And Over Here:

  1. John Podesta: Climate Change Progress Is Possible: "Many in today’s Congress are responding to the urgency of the climate threat not with action, but with obstruction, skepticism, and outright denial. This week, the Senate held a hearing on the EPA’s proposed Clean Power Plan rule, which would set the first-ever limits on how much carbon pollution power plants can put in our air and vastly improve public health as a result, averting up to 150,000 asthma attacks in children per year. Republicans criticized the proposal from every angle--including by claiming it doesn’t do enough. Since we in the United States cannot solve the complex, global challenge of climate change solely through actions taken within our own borders, their argument goes, we should do nothing. This is a fallacy. Failing to take steps today to curb carbon pollution and other greenhouse gas emissions in the U.S. would endanger our economy, our national security, and our children’s future..."

  2. Raquel Fernández and Jonathan Portes: Argentina’s Lessons for Greece: "The first lesson from Argentina is that if the economics are on your side, you can and should ignore politicians prophesying disaster. The vast majority of economists (outside of Germany) agree that Greece’s debt should be written down and its fiscal policy relaxed. There is also little doubt that this is the view of senior economists within the IMF.... The second lesson of the Argentine crisis is that a short period of political turmoil can cost surprisingly little compared to a long period of mindless pursuit of misconceived policies.... Sacrificing Greek interests in the name of European or systemic financial stability may have once been the correct path for the IMF to pursue, but the crisis there is well past the point at which these policies ceased being justifiable. Now that Greece’s ineffectual and unpopular government has been swept away (another accurate prediction), it is time for the rest of Europe to clean up the financial mess...

  3. Yuriy Gorodnichenko, Gérard Roland, and Edward Walker: Putin’s European Fifth Column: "There can be no doubting [Vladimir Putin's] awareness of the role that European ideals--and the possibility of EU membership--has played in motivating the struggle in Ukraine and constraining his actions. The popular desire to join Europe’s community of democratic states was a key force behind the collapse of right-wing dictatorships in Greece, Spain, and Portugal in the 1970s. It also played a critical role in the collapse of communist regimes in Central and Eastern Europe after the fall of the Berlin Wall. And it certainly contributed to the ouster of Ukrainian President Viktor Yanukovych--a key Putin ally--in 2014. Indeed, the existence of a European model continues to guide and encourage those pursuing transparent, democratic governance in many post-communist countries..."

  4. Yanis Varoufakis: No Time for Games in Europe: "The trouble with game theory, as I used to tell my students, is that it takes for granted the players’ motives.... In the current deliberations between our European partners and Greece’s new government, the whole point is to forge new motives. To fashion a fresh mind-set that transcends national divides, dissolves the creditor-debtor distinction in favor of a pan-European perspective, and places the common European good above petty politics, dogma that proves toxic if universalized, and an us-versus-them mind-set.... I am convinced that we have one option only: to shun any temptation to treat this pivotal moment as an experiment in strategizing and, instead, to present honestly the facts concerning Greece’s social economy, table our proposals for regrowing Greece, explain why these are in Europe’s interest, and reveal the red lines beyond which logic and duty prevent us from going..."

  5. Nicholas Bagley: Cleaning up the standing mess in King: "Difficult questions about standing and the viability of the lawsuit.... The King lawyers have an ethical obligation[:]... ‘[w]hen a development after this Court grants certiorari... could have the effect of depriving the Court of jurisdiction due to the absence of a continuing case or controversy, that development should be called to the attention of the Court without delay.’... Without standing, the federal courts lack jurisdiction.... When standing problems become apparent after full briefing, the Court sometimes chooses to dismiss cases as improvidently granted--to ‘DIG’ them.... There’s a better way... call for... plaintiffs’ lawyers to explain the factual basis for their clients’ standing. Ordering such briefing wouldn’t be unprecedented: in a case decided in 2000, for example, the Court ordered supplemental briefing on standing the day after oral argument. And such briefs often address questions pertaining to mootness.... Doing nothing in the face of continued silence from the plaintiffs is no longer a tenable approach."

  6. Matthew Klein: Crush the Financial Sector, End the Great Stagnation?: "Productivity growth in the rich world started slowing down around the same time that the financial sector’s share of economic activity started rising rapidly.... The interesting question, then, is whether this process can be put into reverse. Maybe there is a deeper wisdom behind financial regulations that appear to be (at best) pointless. Harassment that encourages an unproductive, resource-hoarding industry to get smaller might be exactly what’s needed in economies plagued by chronically slow growth."

Should Be Aware of: