Assorted links

by on February 10, 2013 at 4:57 pm in Uncategorized | Permalink

1. Why the Anglo deal isn’t so great.

2. The booklogs of Zeynep Dilli.

3. Why KFC is finding it difficult to expand in Africa, and new link is here.

4. The best #Geithnerbooktitles.

5. Is Japanese recovery across 2000-2007 a puzzle?  (My try at resolution would be to cite rising exports, and not think that “net exports” is the category which matters.)

Brian Donohue February 10, 2013 at 5:34 pm

re #5. This only seems puzzling under certain macroeconomic worldviews.

Noah Smith February 10, 2013 at 6:51 pm

Tyler:

That was my favorite explanation, too.

Ray Lopez February 11, 2013 at 9:16 am

Trouble with Noah Smith’s graphs is that they don’t prove his Keynesian case–quite the opposite. First, I’m not sure this statement is true (eyeballing the graphs): “Did Japan stimulate its way out of the soldrums? According to the liquidity-trap version of New Keynesian economics, an increase in government spending should boost growth in this sort of interest rate environment. However, the period 2000-07 was actually a time of relative austerity for Japan! Japanese government spending decreased noticeably, in both absolute terms and as a percentage of GDP.”. But the FRED graph shows spending way up in the period 2007 to 2000. More importantly, notice the huge government spending increase in the years 1997-99 had a *negative* effect on GDP and GDP/capita–unless you slyly claim there is a three year lag which carried over to the ‘boom’ years of 2000-03. So essentially the graphs show the opposite of the Keynesian thesis (it would be better if Smith labeled the graphs and made them bigger–what is the purple dashed line for example?). Krugman loves to use Japan as his test case; he always claims “Japan did not spend enough” even though the evidence seems clear they spent a lot. With the two new BOJ dove members we’ll see if the neo-Keynesian stimulus will work.

Zachary February 10, 2013 at 7:20 pm

Link three is down…

Zachary February 10, 2013 at 7:25 pm
Cliff February 10, 2013 at 8:22 pm

#3: Clearly, Africa just needs an FDA

Rahul February 11, 2013 at 1:51 am

#3 Loved this snippet; win-win.

“Also, West Africans favor tough, bony cuts that farmers abroad are happy to unload here a loss. “We prefer the dark meat, the gizzard. People eat the neck,” Mr. Appenteng says. He plans to sell gizzards locally and ship unwanted boneless breasts abroad.”

Andre February 11, 2013 at 3:06 am

Traveling to India for work I got my developers to take me out where they like to go, we ended up at KFC. When I went to France with the family we walked past the Eiffel tower and what nearby restaurant was the busiest? A three story KFC with a line out the door and halfway down the block.

KFC can’t sell chicken in Africa? They are selling gigantic American chicken feet like hotcakes in China. Talk about a great stagnation.

Frederic Mari February 11, 2013 at 9:43 am

#5: Brian, can you give us the Austrian/Monetarist explanation of Japan?

IMO, their spending worked pretty well, given the per capita boost to GDP they experienced. However, like Tyler, I think trade is key, rather than net export. After all, importing stuff is also economic activity taking place, meaning jobs and solvent demand is being created, which is all to the good.

Andrew' February 11, 2013 at 11:22 am

4. What Color is Your Golden Parachute? #Geithnerbooktitles.

Tom February 12, 2013 at 11:34 am

When I was in Rwanda, I was surprised that chicken was more expensive than very tasty beef at all the restaurants.
Since I love beef, it was easy to choose tasty steak over chicken.

But I also so chickens walking around the yards, so it’s clear that raising chickens & selling them is possible.

I think KFC is demanding too much consistent quality, rather than changing its own business operations model and allowing more variable weight and separating the chicken into 3 (or 5) sizes and choosing a big+small pairs to even out the portions. Also allowing small size or big size with price adjustments.
Just talking about the complications indicates it’s also not so easy.

In Slovakia chicken breast is about the same as beef front shoulders, cheaper than roasts. (We don’t have good steaks tho.) So we also enjoy duck and goose. I saw neither in Rwanda nor Kenya.

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