Arnold Kling poses a question for Paul Krugman. Here’s how I would answer.
Author Archives: James_Hamilton
Calculating your savings from slowing down
Ironman has developed a neat tool that allows you to input your vehicle’s typical mileage and then calculate how much money you’re likely to save on a particular trip by driving slower. Pretty cool!
How big a contribution could oil speculation be making?
A key reason why oil prices have been going up is that Asia and the oil producing countries are consuming more while global oil production has stagnated. That means Europe and America had to consume less, and a very high price proved necessary to accomplish that.
I do believe that speculation has been another factor that contributed to recent high oil prices. However, a key element of the bubble story is that there needs to be a very limited response of quantity demanded to the price increases, which the most recent data persuade me is no longer the case. Some of the estimates I’ve been hearing of the size of the contribution speculation is currently making to the price are therefore difficult to defend. Here I explain why, essentially elaborating on Paul Krugman’s theme.
Saudi oil production increases
The recently announced Saudi oil production increases are more modest than had been suggested in some of the earlier rumors. The Oil Drum ([1],[2]) is your source for the meaning of the latest announcements.
How to save money on gas
Environmental Economics and The Energy Collective are among the many voices recently advising consumers they could save gasoline by driving more slowly. I was curious to take a look at the evidence behind such claims.
China and the business cycle
Could the phenomenal growth train get derailed?
Saudi oil production plans
A potentially huge story from the New York Times.
A bit of sunshine
Consumers say they’re gloomy, but why are they still spending?
Housing and the oil shock
The housing downturn and rising gasoline prices are each exerting a significant contractionary influence on U.S. GDP. There is also an interactive effect between the two.
Oil spike
Why did oil breach $138?