FOO Law and Economics

Tuesday, December 9, 2008

How to firewall the Philippine economy

This is a somewhat perplexing question. Please see my article in the Philippine Daily Tribune (December 6, 2008).

The short answer is that we cannot firewall an open economy. We can do some things to make it resilient, but these are long-term fixes. But short-run policy mistakes, such as an overly tight monetary policy and an overvalued exchange rate, will weaken the economy.

Of course, we could turn inward, and take the protectionist path of Myanmar, North Korea, and Cuba. But this is not a serious option. It would simply keep us forever poor.

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Economics as Zen

The market is like a post-impressionist painting.. The close view is no more real than the far view.. That is all.
-- Deirdre McCloskey

Ponzi units ... make position by selling out positions.
-- Hyman Minsky

Words ought to be a little wild, for they are the assaults of thoughts on the unthinking.
-- John Maynard Keynes

The wish is father to the thought.. What it means is that the wish is the father of faith.
-- Ludwig von Mises

T. S. Eliot wrote about the bottoms of trousers worn rolled

Having long toiled within a behemoth, I have since decamped to a quiet bay, at times on a single outrigger. I contemplate how social order and the economy interact. And what it's all about.

I've come to realize, painfully, that opportunity cost shatters the lenses of artificial privilege and self-delusion -- either you can or can't, whatever be the object. Why? Because opportunity cost is the next best thing.

Contemplation works.

-- Orlando Roncesvalles