This table shows various trade rounds and the time taken to achieve the desired changes..
Archive for June 8th, 2012
Whether US unemployment is because of structural (mismatch between skills and availability of jobs) or because of cyclical issues (low demand) is a hot debate. The policy implications are according to the stance one takes. Those in former camp believe mon pol cannot do much in case of high mismatch. Latter camp believes it does.
Chicago Fed chief has stressed in couple of speeches that high unemployment a cyclical problem. And this can be resolved by easy mon policy. He came with innovative thinking like Price Level targeting/unemployment targeting to keep policy rates at current levels till price level/unemployment levels rise..
Here is a short paper on the mismatch from Chicago Fed econs. They nicely show much of the rise in unemployment is not because of mismatch. They point that during the crisis, mismatch had increased but lately has declined:
I was just amazed to read this interview of Ariel Rubinstein. Someone who is so famous for his game theory work actually feels it does not really have much practical usage. He actually encourages people to write a book which shows limitations of game theory! He also talks about why so many Israelis take up game theory (because of Aumann effect) etc.
I was so surprised to read the interview that had to re-read it many times to be sure whether I have not read it wrong ..
He starts by saying much of game theory is based on the typical econ assumption of rationality. So you feel as if he will tell you the new ideas emerging etc in GT. However what you get instead is this: