There's a new Vox paper suggesting that supply-side policies — structural reform that makes workers more productive, prices more flexible, or whatever — may be the answer to a liquidity trap.
Heathrow is at capacity and monopoly regulation is therefore counter-productive: prices should clear the market.Consumers would ultimately pay, but this is just an extension of the principle of peak-load pricing, which we accept for rail travel but for some reason not for air travel.
As long as the European industry is running at about two-thirds of its productive potential, prices will stay soft.
As mines become less productive, coal prices will rise, making the fuel less competitive.The places where coal is mined are also changing.
In a theoretical work that assumes a "regime of perfectly free competition," Walras constructed a mathematical model in which productive factors, products, and prices automatically adjust in equilibrium.
In a display about Prohibition, a handmade still is accompanied by a description of the many fires once seen in the nocturnal countryside, a sign of illegal distilleries so productive that the price of whiskey dropped.
Gold stocks may actually be more productive than the price of the metal itself, since the miners tend to be more volatile in both directions.
Cotton production on Alabama farmland was highly productive, and cotton prices were surging on demand from British textile manufacturers.
While the new residents make good neighbors, they do not provide the skills that are lost when more productive residents are priced out of the housing market.
In "The Future," Mr. Gore admits that the Luddites, who feared that the Industrial Revolution would create structural unemployment, were wrong: "The new jobs that emerged in factories not only outnumbered those lost on farms but produced higher incomes, even as farms became far more productive and food prices sharply declined".
