Tagged: Matt Nolan

Inequality, mental models, and counterfactuals - The Dismal Science

Bill Kaye-Blake Sep 09, 2013

In the recent book Inequality: A New Zealand Crisis, Jonathan Boston has a really useful chapter. It probably should have started the book as a way of laying some intellectual groundwork, instead of being Chapter 5. It raises the same point as Matt Nolan does at TVHE, quoting Amartya Sen, but with more detail. Here’s Boston: […] … Read More

Reader mailbag: LVR edition - The Dismal Science

Eric Crampton Aug 22, 2013

A loyal reader writes, and I anonymise: My [partner] is a [high ranking title] at [large professional services firm] and over drinks last night the young [professionals in this industry] (under 28, mostly single, still have student loans, gross income btw 60k and 90k, most 2/3 years’ experience max) were crapping themselves re the RB’s loan restrictions…really pissed about it. Read More

Housing daily: LVR, NIMBYs, and congestion charging - The Dismal Science

Eric Crampton Jul 16, 2013

The RBNZ will soon announce its Loan-to-Value rules. Matt Nolan makes a few reasonable points (all my paraphrasing):If the policy is targeted at financial stability, then it has to bite on high-leverage first home loans as those are the most likely to wind up in positions of default.  I'm still a bit sceptical here as the OBR rules mean … Read More

Housing Tradeoffs - The Dismal Science

Eric Crampton Jul 01, 2013

The RBNZ is looking more seriously at loan-to-value ratio regulations to curb house price appreciation. I've been skeptical about LVR regulations. If adopted as a "thou shalt not loan more than x% of the house's value" commandment applying to all new loans, they would have substantial effects on first home buyers unable to lean on family for support. If … Read More

The dreaded spreadsheet error - The Dismal Science

Bill Kaye-Blake Apr 22, 2013

I posted flippantly last week about the Reinhart and Rogoff (R&R) re-assessment by Herndon, Ash, and Pollin. There’s been more bytes spilled since then. The Economist says it’s not such a big deal, because  ’Ms Reinhart and Mr Rogoff acknowledge in their academic work that this conundrum “has not been fully resolved”, but have sometimes been less careful […] … Read More

Open Banking Resolution and Deposit Insurance - The Dismal Science

Eric Crampton Apr 12, 2013

New Zealand's Open Banking Resolution system in case of bank failure makes bank failure less likely, and so makes depositor bailouts less likely, but doesn't eliminate the risk that the government might bail out depositors. Matt Nolan has made this point more than a few times and has urged that we reinstate deposit insurance and require banks to … Read More