Semper ubi sub ubi

by Eric on February 4, 2015

I write to record a position on a subject already treated in more specialist fora, but so far as I can tell given only Kieran’s crispest disposal on CT.

I refer, of course, to a matter routinely, if implicitly, raised by the auditors of curricula, every time they ask for samples of a syllabus: if they request more than one, what do they say they want? Syllabi? Or syllabuses?1

Doubtless this issue vexes few of the hoi polloi, nor troubles many alumni of great universities. Indeed, academics – from the Hebrides to the Antipodes – seem often to use “syllabi.”

A highly scientific anti-prescriptivist study has it that the answer is “syllabi.” Yet Kieran, per above, prefers “syllabuses,” as indeed do I.

If your etymological antennae are twitching, you can find a detailed account of the story of “syllabus” at the specialist links in the first sentence of the post. But the short version is, it’s a made-up word, erroneously thought to be adopted into Latin from the Greek, which it wasn’t. I.e., there isn’t a true proper correct answer, horribile dictu.


1I’ve never actually heard anyone insist it’s syllabÅ«s.

Asset sales and interest rates (wonkish)

by John Quiggin on February 4, 2015

One of the strongest most politically effective arguments made for selling publicly owned assets, such as government owned corporations is that, by reducing debt, it will reduce the interest rate on government bonds. This is plausible enough, and not by itself a conclusive argument. The interest saving (including the benefit of lower rates on remaining debt) needs to be set against the loss of earnings. But it would be nice to know how large this saving might be.

The Queensland state election, just passed, provides something of a natural experiment. The LNP government proposed to sell $37 billion in public assets and repay $25 billion in debt ($18 billion associated with the enterprises to be sold, and $7 billion in general government debt. Going in with 73 of 89 seats, the LNP was almost universally expected to be returned. Instead, they lost their majority and will probably lose office. Although the result is not yet final, everyone is now agreed that asset sales are off the table.

So, we should be able to look at the secondary market for QTC bonds to see how much this surprise changed the interest rate demanded by bondholders (this is what’s called an “event study” in the jargon of academic finance). You can get the data from https://www.qtc.qld.gov.au/qtc/public/web/individual-investors/rates/interactive%20rate%20finder/!ut/p/a0/04_Sj9CPykssy0xPLMnMz0vMAfGjzOLdnX2DLZwMHQ383QwtDDy9DUIsPTwDDA2NTPULsh0VAVfZvz4!/

and I’ve included it over the fold (a bit of a mess as I can’t do HTML tables)

The data shows that interest rates have generally been tending downwards, as you would expect given the Reserve Bank’s much-anticipated cut. On the trading day after the election, rates on longer term bonds rose by between 0.05 and 0.1 percentage points (or, in the market jargon 5 and 10 basis) points. But all of that increase, and more, was wiped out the next day when the RBA confirmed its cut. Overall rates on QTC debt have fallen by around 0.25 percentage points since Newman called, and then lost, his snap election.

To sum up, the surprise abandonment of one of the largest proposed asset sales in Australian history caused only a momentary blip in interest rates on Queensland government debt, immediately wiped out by a modest adjustment in monetary policy at the national level.

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