Economics and similar, for the sleep-deprived
A subtle change has been made to the comments links, so they no longer pop up. Does this in any way help with the problem about comments not appearing on permalinked posts, readers?
Update: seemingly not
Update: Oh yeah!
Sunday, June 20, 2010
Please oh please oh please
Gahhhh, economics, my greatest pleasure but the source of all my frustrations. Today I am mostly being irritated by the theory of optimal currency areas.
Look guys. It is true that the USA has somewhat higher internal labour mobility than the Euro area. It is not true!!!!!1! that this internal labour mobility equilibrates regional economic differences to any economically significant extent. The Rust Belt happened. Michigan is how it is. The oil states have oil booms and oil busts. Florida is procyclical because of tourism. California had a tech boom and bust.
In actual fact, regional fluctuations in the USA are smoothed out by transfers from central government and by countercyclical monetary policy at the federal level. The USA is NOT an optimal currency area, or even close to being one.
Also not an optimal currency area: Canada. And Germany.
this item posted by the management 6/20/2010 11:51:00 PM