Inflation Targeting

It doesn't look like the fed wil be targeting inflation any time soon. The money quote from the minutes of the Febuary meeting:

At this meeting the Committee engaged in a broad-ranging discussion of the pros and cons of formulating a numerical definition of the price-stability objective of monetary policy. A staff presentation on the topic included a review of the potential costs and benefits of introducing such a definition as well as of other countries’ experiences. In the subsequent discussion, meeting participants uniformly agreed that price stability provided the best environment for maximizing sustainable economic growth in the long run, but expressed a range of views on whether it would be helpful for the Committee to articulate a specific numerical definition for the Federal Reserve's price-stability objective--either a single figure or a range. Those who believed such a move would be on balance beneficial cited, for example, its usefulness as an anchor for long-term inflation expectations, as a vehicle for enhanced clarity of Committee deliberations, and as an additional tool for communications. Several of those who saw greater potential drawbacks were concerned that such a shift might appear to be inconsistent with the Committee’s dual mandate of fostering maximum employment as well as price stability or that it might inappropriately bias or constrain policy at times; in any case, with inflation expectations well-contained over recent years, the benefits of announcing a specific inflation objective were not likely to be large. The Committee decided to defer further discussion.

Keywords: ECO301, Monetary Policy, Inflation Targeting

Sparta and Alcohol

Stories like this make you wonder if there was ever any piece of legislation enacted for the public interest, or is it always only serving some narrow personal interest? Well, this story from the tribune makes me laugh, because the idiot hasn't learned his lesson. When supporting legislation to keep competitors out of your market, you better make sure the ban doesn't include you.

But Eddie Habhegger isn't a referendum supporter. The owner of Fast Eddie's
Beverage, on Hwy. 21 in the town of Sparta, said his business was in city until
1963, when a referendum forced him and another liquor store to leave
Sparta.

A grocery store had sought to sell beer and liquor, so the issue went
to referendum. Habhegger pushed for its defeat, only to learn when he sought to renew his retail sales license that the new referendum excluded his store as well.

"We lost our business and everything," he said. "We had to start all
over again."

Habhegger was able to buy some land on Hwy. 21, and the town of
Sparta granted him a license. The family-run business has been there ever
since.

The city has plenty of bars and taverns that sell beer and liquor for
off-premises consumption, Habhegger said.

"We will continue to maintain very low prices here, and hope the people will vote the same way we will ? no. We're hopin' and prayin' that we win," he said.

Turning Japanese

Hopefully the US economy is not turning Japanese. According to the FT, it appears as though things have once again slowed down.

Japan's economy slipped back into recession on Wednesday when newly released data showed its gross domestic product had contracted for three consecutive quarters, bringing an official end to the country's three-year recovery.

Times they have a changed...I don't wish ill on any country, but I did have to suffer through the 80's prognostications of Japanese economic dominance, so forgive me if I don't act like this is the most upsetting turn of events.

Keywords: Japan, ECO120, ECO301, Recession

Thank God This Ain't Oklahoma

By way of the Volokh Conspiracy: We have this newly proposed law in Oklahoma. The important parts, for purposes of this post are:

Section 1111. A. Rape is an act of sexual intercourse involving vaginal or
anal penetration accomplished with a male or female who is not the spouse of the
perpetrator . . . under any of the following circumstances:

9. Where the victim is an undergraduate student under twenty-one (21) years
of age attending any college or university in this state or the victim is
attending any public or private secondary school in this state, regardless of
the person's age, and engages in sexual intercourse with a person who is an
employee of the same college, university or school system unless the two persons
were legally married prior to enrollment or employment in such college,
university or school. . . . .

Patently absurd.

Stupidity

More stupidity from the obscenity police. This article talks about pictures found on a laptop.

A Manvel couple has been arrested on obscenity charges after authorities
say they found pictures from a swingers group on a laptop the wife had on loan
from Alvin Community College.

The lesson is, learn how to cover your tracks, or is it buy your own computer? Link via the Vicesquad.

Keywords: Obscenity, Porn

Econ Majors

According to this CNN/Money article, it looks as though Econ/Finance majors are one of the top 10 majors sought by employers. So it looks like the recent surge in majors is or should be happening elsewhere as well.

When asked which new college grads they were likely to hire, the greatest number of employers said they were interested in hiring grads who majored in accounting, electrical engineering, mechanical engineering, business administration and economics/finance.

Keywords: Econ Majors, Education

Bumper to Bumper

In his Sunday November 7th, New York Times column “Consumed”, Rob Walker takes on the yellow-ribbon magnet fad wondering why over a million people have purchased the $5 magnet with the slogan “Support Our Troops.”

Initially, back in 2003, the magnet was developed to sell as a fundraiser for schools and churches, but with copycats, the little magnet that people place on their bumper has become an all-out fad.

Walker wonders why people are so moved to buy the magnet:

“One attraction, clearly, is the message: ‘Support our Troops’ is an idea with extremely wide appeal. Noam Chomsky—to cite an authority rarely referenced on the subject of car decoration—actually addressed the attraction of that exact slogan during the 1991 (magnetless) gulf war: ‘Who can be against that?

His point was that such phrases and symbols amounted to instruments of propaganda that divert discussion from issues of substance. Of course, to apply this to the magnet-bearers is to suggest that they are making some kind of public argument, engaging if not in rhetoric then at least in a kind of advertising-like coercion: ‘Hey, fellow driver on the public roads, I implore you to support our troops.’”

Instead of being an exhortation, Walker claims that bumper art is a declaration:
Flag = “I’m a patriot!”

Bush/Cheney or Kerry/Edwards = A particular brand of patriotism

Rainbow Flag/Equality Sign = “I’m Gay and I Drive!”

Then there are the typical:
“My Kid is an Honor Student at _____!”

But, as Walker points out, its hard to figure out what some declarations mean:
“And that weirdly popular (and unauthorized) image of the Calvin character from the comic strip ‘Calvin and Hobbes’ urinating”

I’ve always wondered about this one, the “Naked Mud Flap Girl.” What does that mean? Is it an advertisement of one’s sexuality? Is it the cartoon-ish equivalent to a personals ad? Is it intended to be persuasive? Persuasive of what exactly?

If so, its not working “…onlookers are seldom, if ever, persuaded of anything.”

So why do people feel the need to make some sort of statement to strangers on the highway? Walker hypothesizes that its about the numbers

"Put a yellow ribbon in your yard, and only your neighbors will see it; put it on your car or truck, and as you crawl through your clogged commute, you may have an audience of hundreds or thousands. And maybe in the crowd you’ll notice others with declarative symbols just like yours. If there is no way to interact with them, it’s fine, because that was never really the point”