Bookblogging: new name(s), new intro (slightly updated 18/8)

The current working title for the book is Zombie Economics: Six Dead Ideas that Threaten the World Economy (suggestions for a better subtitle are welcome) and that requires a new intro.

Also, I’ve come to the view that “market liberalism”, as opposed to “economic liberalism”, is a better name for the viewpoint, based on the efficient financial markets hypothesis and other ideas criticised here, that has dominated policy thinking in recent decades.

Any thoughts on these points, or the revised intro, would be most welcome.
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The politics of the CPRS

In the process leading up to the Senate’s rejection of the government’s Carbon Pollution Reduction Scheme, no one has covered themselves with glory. Starting with the Independents, there’s little that can be said about Fielding except that the sooner he is sent home to nurse his delusions, the better. Nick Xenophon has unfortunately followed his customary line of trying to come up with his own alternative scheme. At this stage of the game, this position is not much different, in practice, from Fielding’s, though it offers more chance of a rethink on the second round. The Nationals have pretty much followed the Fielding line, and the Liberals have been all over the shop, as usual.

That leaves Labor and the Greens, neither of whom can be particularly proud of themselves. In the absence of a disaster, they will control the Senate between them in the next Parliament and will have little choice but to make deals on climate policy. As a leadup to this, it would be great if they could have reached an agreement on an improved, if still imperfect, CPRS. But Labor is more interested in wedging the Libs, and the Greens are more interested in political purity.

What would an improved CPRS look like? First, as I’ve argued already, the government’s conditional target of 25 per cent is about right. There’s no way Copenhagen will produce a number much larger than this – the US is offering 17, and the EU 30 with an asterisk (a choice of start date that makes them look particularly good). The 5 per cent target could be higher, but really, if we don’t get a global agreement, nothing Australia does really matters. The big flaws in the CPRS are the excessive giveaways of free permits (and the correspondingly limited compensation for households and displaced workers) and the fact that the design negates the benefits of any voluntary reductions (I initially thought the changes announced in March addressed this point, but they don’t).
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