"Words ought to be a little wild, for they are the assault of thoughts on the unthinking" - JMK
- Russia and the EU announce they are teaming up to put a man on Mars. I am guessing we'll hear more announcements this November when the cosmonauts are released from their 520 day Mars mission training.
- Paul Krugman and Dean Baker to a great job explaining how relative prices are related to aggregate prices and macroeconomic processes. The other day Peter Boettke asked "how can someone build a "general theory of anti-Mulliganism" without rejecting the use of microeconomics to understand macroeconomic problems?". I don't know what's so hard about this for him. The responses to Krugman and Baker have been grounded in microeconomics and the implications of microeconomics for macroeconomics. Casey Mulligan confuses relative price differentials for aggregate prices and lots of people have been saying this. Nobody is criticizing the use of microeconomics to understand macroeconomics - they're criticizing Mulligan's poor approach to that very problem.
- Megan McArdle talks about how beneficial exclusive schools are. I don't care so much about the result she reports as I do about the method. She's refering to an NBER working paper that uses one of my favorite quasi-experimental methods - regression discontinuity designs. It's very good to see that (1.) this method can be easily explained to readers by journalists, and (2.) nobody is second guessing it because it's not experimental. I'm going to be presenting a regression discontinuity evaluation of a job creation tax credit this November, which brings me to...
- Obama is announcing a new approach to jobs which apparently has a new hire tax credit. Very good news. It could be a lot more, but this is a good option for him to come back to.