http://crookedtimber.org/2004/11/24/the-flight-of-the-kiwi/ Out of the crooked timber of humanity, no straight thing was ever made Sun, 08 Nov 2009 08:39:38 -0800 http://wordpress.org/?v=2.8.5 hourly 1 http://crookedtimber.org/2004/11/24/the-flight-of-the-kiwi/comment-page-1/#comment-51981 Michael Mouse Thu, 25 Nov 2004 11:28:00 +0000 http://crookedtimber.org/wp/?p=2570#comment-51981 <i>"The fact that financial markets and corporate HQs have clustered ever more closely in a few high-cost global cities is evidence that corporate cronyism is trumping economic efficiency."</i> Equally, it's evidence that humans place a large premium on face-to-face contact. It's only economic inefficiency if you say that this preference is in some way not an economic one, or that they are ignoring some theoretical true "value" that departs significantly from "what people are prepared to pay". That a market tends towards concentration is hardly shocking and unexpected news. “The fact that financial markets and corporate HQs have clustered ever more closely in a few high-cost global cities is evidence that corporate cronyism is trumping economic efficiency.” Equally, it’s evidence that humans place a large premium on face-to-face contact. It’s only economic inefficiency if you say that this preference is in some way not an economic one, or that they are ignoring some theoretical true “value” that departs significantly from “what people are prepared to pay”. That a market tends towards concentration is hardly shocking and unexpected news.

]]> http://crookedtimber.org/2004/11/24/the-flight-of-the-kiwi/comment-page-1/#comment-51980 derrida derider Thu, 25 Nov 2004 03:26:00 +0000 http://crookedtimber.org/wp/?p=2570#comment-51980 John is spot on about macroeconomic mistakes costing the Kiwis dearly. Which reinforces the one really good thing about the Howeard government that offsets an awful lot of its deficiencies - they haven't stuffed up macro policy at any stage. Looking around the world, not stuffing up macro policy is something that <b>is</b> "really hard" because you can get easy short term popularity by refusing to do the needful (are you listening, Dubya & Greenspan?). John is spot on about macroeconomic mistakes costing the Kiwis dearly. Which reinforces the one really good thing about the Howeard government that offsets an awful lot of its deficiencies – they haven’t stuffed up macro policy at any stage. Looking around the world, not stuffing up macro policy is something that is “really hard” because you can get easy short term popularity by refusing to do the needful (are you listening, Dubya & Greenspan?).

]]> http://crookedtimber.org/2004/11/24/the-flight-of-the-kiwi/comment-page-1/#comment-51979 Mike Huben Wed, 24 Nov 2004 22:45:29 +0000 http://crookedtimber.org/wp/?p=2570#comment-51979 I have a web page for criticisms of such experiments (because they are endorsed by libertarians): http://world.std.com/~mhuben/econexper.html I include one by Quiggan. Am I missing any other important ones? I have a web page for criticisms of such experiments (because they are endorsed by libertarians): http://world.std.com/~mhuben/econexper.html I include one by Quiggan. Am I missing any other important ones?

]]> http://crookedtimber.org/2004/11/24/the-flight-of-the-kiwi/comment-page-1/#comment-51978 Giles Wed, 24 Nov 2004 21:16:35 +0000 http://crookedtimber.org/wp/?p=2570#comment-51978 Indeed Idiot, but I think that he Russians get first call on any payments made to someone for being used as an experiment. Indeed Idiot, but I think that he Russians get first call on any payments made to someone for being used as an experiment.

]]> http://crookedtimber.org/2004/11/24/the-flight-of-the-kiwi/comment-page-1/#comment-51977 Idiot/Savant Wed, 24 Nov 2004 20:08:43 +0000 http://crookedtimber.org/wp/?p=2570#comment-51977 Tom T: Yes, but we're not _that_ small an economy. Giles: it would be nice if people would pay us for being their testbed, rather than freeloading. Tom T: Yes, but we’re not that small an economy. Giles: it would be nice if people would pay us for being their testbed, rather than freeloading.

]]> http://crookedtimber.org/2004/11/24/the-flight-of-the-kiwi/comment-page-1/#comment-51976 asg Wed, 24 Nov 2004 18:50:20 +0000 http://crookedtimber.org/wp/?p=2570#comment-51976 Marginal Rev links a follow-up post from a NZ blogger: http://www.marginalrevolution.com/marginalrevolution/2004/11/new_zealand_con.html Marginal Rev links a follow-up post from a NZ blogger: http://www.marginalrevolution.com/marginalrevolution/2004/11/new_zealand_con.html

]]> http://crookedtimber.org/2004/11/24/the-flight-of-the-kiwi/comment-page-1/#comment-51975 Giles Wed, 24 Nov 2004 16:16:16 +0000 http://crookedtimber.org/wp/?p=2570#comment-51975 “market Leninist approach to reform, in which massive reforms were rammed through fast, with any opposition being crushed.” Its also worth asking why this occurred. The distinguishing feature of New Zealand compared to Australia is that it has a unicameral system which allows radical policies to be rammed through without allowing the time for adequate consideration or public consultation or persuasion (this is the Kasper Wolfgang argument and also a reason why the bloody minded Australain senate is probably a good thing not a bad thing). Perhaps more importantly this has allowed New Zealand to be a sort of academic economics experiment – for instance it was one of the leading countries to grant central bank independence, which is probably a good idea, but like most things the devil is in the detail, so for instance the original 0% inflation target turned out to be dumb. Still, the experiment yielded some benefits, other countries learned not to make the same mistakes as the Kiwi’s. “market Leninist approach to reform, in which massive reforms were rammed through fast, with any opposition being crushed.” Its also worth asking why this occurred. The distinguishing feature of New Zealand compared to Australia is that it has a unicameral system which allows radical policies to be rammed through without allowing the time for adequate consideration or public consultation or persuasion (this is the Kasper Wolfgang argument and also a reason why the bloody minded Australain senate is probably a good thing not a bad thing). Perhaps more importantly this has allowed New Zealand to be a sort of academic economics experiment – for instance it was one of the leading countries to grant central bank independence, which is probably a good idea, but like most things the devil is in the detail, so for instance the original 0% inflation target turned out to be dumb. Still, the experiment yielded some benefits, other countries learned not to make the same mistakes as the Kiwi’s.

]]> http://crookedtimber.org/2004/11/24/the-flight-of-the-kiwi/comment-page-1/#comment-51974 Tom T. Wed, 24 Nov 2004 12:41:25 +0000 http://crookedtimber.org/wp/?p=2570#comment-51974 I wonder if you may not be catching the relevant driver of recent growth. Doesn't the 1999- period that you cite also coincide with the filming of the Lord of the Rings? I wonder if you may not be catching the relevant driver of recent growth. Doesn’t the 1999- period that you cite also coincide with the filming of the Lord of the Rings?

]]> http://crookedtimber.org/2004/11/24/the-flight-of-the-kiwi/comment-page-1/#comment-51973 Barry Wed, 24 Nov 2004 11:53:15 +0000 http://crookedtimber.org/wp/?p=2570#comment-51973 This is easy to refute: let L=(time of good economic performance - time of initiation of reforms). Then, clearly, there is a lag of time L. Therefore, the good times were the fault of the previous reforms, while the bad times after the reforms were the fault of the Evul Librul Pinko's who rule before the reforms. Good enough for the Wall Street Journal, good enough for America, good enough for everybody :) This is easy to refute: let L=(time of good economic performance – time of initiation of reforms). Then, clearly, there is a lag of time L. Therefore, the good times were the fault of the previous reforms, while the bad times after the reforms were the fault of the Evul Librul Pinko’s who rule before the reforms. Good enough for the Wall Street Journal, good enough for America, good enough for everybody :)

]]> http://crookedtimber.org/2004/11/24/the-flight-of-the-kiwi/comment-page-1/#comment-51972 Idiot/Savant Wed, 24 Nov 2004 11:00:56 +0000 http://crookedtimber.org/wp/?p=2570#comment-51972 The post-99 growth spurt can also be seen as a return to stability and certainty. During the "reform" period, we were subjected to a policy blitzkrieg, and never really knew what mad ideas the government would next decide to inflict upon us. Massive changes were rammed through literally in the middle of the night, and in some cases the speed of policy development was so rapid that legislation went to its first reading with chunks marked "to be provided". That insanity ended with the 1999 election, and we're all better off for it. The post-99 growth spurt can also be seen as a return to stability and certainty. During the “reform” period, we were subjected to a policy blitzkrieg, and never really knew what mad ideas the government would next decide to inflict upon us. Massive changes were rammed through literally in the middle of the night, and in some cases the speed of policy development was so rapid that legislation went to its first reading with chunks marked “to be provided”. That insanity ended with the 1999 election, and we’re all better off for it.

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