Today's political right is uneasy with Milton Friedman (as they would be with Ronald Reagan)
Noahpinion has been on fire.
Is risk immeasurable?
Noahpinion suggest this is the case.
Japanese Labour Market reform?
It strikes me the root of this is the protection/subsidies given to corporates in Japan. Japan has had real falling wages, (and continues to) so the problem to me does not seems to be in wage cuts which is what economists euphemistically call labour market reforms.
Ok it could also mean legislation that allows companies to layoff workers cheaply. But if these workers are laid off cheaply who foots the bill for a 45 year old that can't get a job -the social safety system, meaning the income tax payer principally. Once again corporate tax reform, before anything else, imo is needed and is the missing piece in most developed countries plans.
(I am in favour of super high rates for the rich btw). Japan is a country that values social cohesion, and to maintain social cohesion the state will need to play a bigger role in the future to underwrite labour market risk is they are going to have political reforms that restore competitiveness of Japanese industry.
Much of the recent evidence emerging in trade shows that the rich are not job creators in their own country anymore- they are job offshorers and capital buyers. This is causing extreme income inequality and ultimately if it continues will destabilize these democracies.
Moreoever, intergenerational wealth mobility is decreasing so we can't even argue that life is a lottery where most have a similar chance of success given long grinding periods of hard work. So those that benefit from globalization and technology- the ultra rich and multinationals can and must pay more.
A TFP graph shows why Abenomics will fail unless they quickly reform the nontradables sector
Fan Favs of Noahpinion
We all have the tendency to look for evidence that supports our world view and dismiss items that run contrary. Here are a couple of posts by blogger Noahpinion, one on the general tendency for macro models/papers to have a conservative policy bias, the other a specific critique on the weak criticism by Tyler Cowen, of Marginal Revolution, on Keynesian economics.
As to my own confirmation bias, I once again say that those cheerleaders for the FED/ECB, US Economic recovery, and current valuations of the stock market are incredibly premature and most likely self-delusional.
Just saying its them -not me.