Yue Chim Richard Wong 王于漸
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The Chicago School Innovations in Economics

By YueChim Richard On 2012/01/18 · Add Comment · 6,015 views
Chicago innovations in economic theory are "paradigm preserving" or "paradigm extending". They extend the theory of markets to behavior previously considered intractable to economic analysis.
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The Chicago School on Assumptions and Predictions in Economics

By YueChim Richard On 2012/01/12 · Add Comment · 12,211 views
A biologist could propose to construct a mathematical model of a tree which has an objective to maximize exposure to sunlight for the purpose of photosynthesis. . . . . . if the model succeeded in predicting the arrangement of the branches and leaves of trees, we would consider this to be a good scientific model of tree “behavior” and would not be troubled by the idea that the biologist had made an “implausible” assumption about tree behavior. . . . . . actual trees do not “reason” and is capable of solving the biologist’s mathematical model.
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Emergence of the Chicago School of Economics

By YueChim Richard On 2012/01/06 · Add Comment · 8,153 views
Knight had many admirers among the Chicago graduate student body, but only a few students. Fortunately, some of these were extremely able; notably, Friedman, Stigler, Allen Wallis and James Buchanan. It was mainly through his personal impact on a few influential students that Knight affected the subsequent course of Chicago economics.
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Liberalism versus Populism

By YueChim Richard On 2011/12/30 · Add Comment · 27,241 views
. . . . . preferences cannot be aggregated into a consistent ranking. Pretending that there is a “general will” is not only misleading, but would lead to the wrong belief that manipulated political outcomes represent elevated moral and righteous outcomes. It would lead to the type of politics that is ultimately totally oppressive.
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Taxation, Regulation and the Rational Politician

By YueChim Richard On 2011/12/23 · Add Comment · 4,280 views
. . . . . in Hong Kong in which politicians use regulation to advance the interests that support them or that they represent. Hong Kong’s Basic Law does not permit legislators to propose bills that would have budgetary consequences. But since regulatory interventions do not have direct budgetary consequences, they provide an alternative means for politicians to gain votes to maintain their political power and office. . . . . . Such a situation makes it logical for politicians to target their regulations at “big” corporations. . . . . . Politically it is often necessary to first demonize the corporations as a prelude to redistributing their surpluses.
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Germany and Europe: The History

By YueChim Richard On 2011/12/16 · Add Comment · 4,142 views
The French Enlightenment philosopher Voltaire mocked the Holy Roman Empire as neither holy, nor Roman, nor an Empire. Yet its survival is somewhat magical, carrying a name and an idea that embodied all three core elements that define Europe. Its belief system was Christian, it laws were Roman, and it was an empire in a non-oppressive Germanic way.
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The Economic Future of Europe

By YueChim Richard On 2011/12/09 · Add Comment · 4,148 views
. . . . . it places responsibility for saving the Euro squarely in Germany’s hands. The only way to save the Euro (and incidentally to prevent Germany’s banks from being forced to absorb huge losses on peripheral European debt) is for Germany to spur consumption and investment enough to reverse the current account surplus. This would require the European Central Bank to embark on an expansionary monetary policy. Only this will allow peripheral Europe to grow and to earn the euros needed to repay the debt.
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Global Money, Local Politics, and Regional Imbalances in Europe

By YueChim Richard On 2011/12/02 · Add Comment · 3,648 views
In the case of Europe, although money is global and politics is local, there is an imbalance in international trade in manufactured goods that is very much regional; and this is the crux of Europe’s problems today. . . . . . At present, their structural external deficits are too large to be financed voluntarily.
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Why there is Speculation in the Market for Pre-Sale Housing Units (Part II)

By YueChim Richard On 2011/11/25 · Add Comment · 6,676 views
“In a world of imperfect foresight, the existence of speculators enables the system to behave with more foresight than the average individual in the system possesses.”
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Why there is Speculation in the Market for Pre-Sale Housing Units (Part I)

By YueChim Richard On 2011/11/18 · Add Comment · 27,669 views
Twenty years ago, I wrote . . . . . to explain to the public why it was not a good idea for the Government to intervene in the pre-sale market for housing units. What was clear to me then, as it is now, was that there was no compelling reason to believe the market was failing or that Government intervention to curb speculation was warranted. . . . . . So long as banks remain prudent in making mortgage loans, there is hardly any rationale for regulating a purely voluntary exchange arrangement. When the threat of systemic banking risks is absent, the case for market failure arising from speculation in asset markets cannot really exist.
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Easy Money, Tight Money, and Market Monetarism

By YueChim Richard On 2011/11/11 · 1 Comment · 11,049 views
Friedman in the same article lamented that, “After the U.S. experience during the Great Depression, and after inflation and rising interest rates in the 1970s and disinflation and falling interest rates in the 1980s, I thought the fallacy of identifying tight money with high interest rates and easy money with low interest rates was dead. Apparently, old fallacies never die.”
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Global Economic Integration and the Distribution of Housing Wealth in Hong Kong

By YueChim Richard On 2011/11/04 · Add Comment · 17,757 views
A society with 84% homeownership has to be the best defense for the golden straitjacket of deep economic integration.
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On Housing Policy and Social Justice

By YueChim Richard On 2011/10/28 · Add Comment · 9,061 views
1965 to 2010 . . . . . real per capita GDP . . . . . Singapore grew faster than Hong Kong at an average annual rate of approximately 1.35%. As a consequence, a Singaporean who started with $100 in 1965 was making $1,167 in 2010, but their Hong Kong counterpart was making only $655. The Singaporean had 78% more. . . . . . Singapore allows for an active market in public housing units. This means it does not suffer the kind of deadweight social welfare losses that are present in Hong Kong in both public rental housing and Homeownership Scheme (HOS) units. This factor alone could easily account for most, if not all, of the differences in per capita real GDP growth between Singapore and Hong Kong.
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On Government Failures during the Great Depression and Great Recession (Part II)

By YueChim Richard On 2011/10/21 · Add Comment · 3,848 views
The Keynesian formula has reached the end of the road. Borrowing from the next generation was a trick because they had no say in this decision. We have all abused them. What is next? It is time to turn to a different, more durable solution. Ultimately, people in the affected countries will have to work harder and consume less to pay off their own debt. Hard work entails investing in productivity and training. It also means tax and regulatory reforms that reward work, not penalize it.
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On Government Failures during the Great Depression and Great Recession (Part I)

By YueChim Richard On 2011/10/14 · Add Comment · 8,511 views
. . . . . global economic crises . . . . . the underlying causes go back much further. This crisis started first and foremost as a bank panic. Similarly the Great Depression was an economic crisis that started with a bank panic, in October 1930. . . . . .
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