I’ve been reading RG’s strange columns with increasing incredulity. About how raising interest rates will drive house prices up. Now he doesn’t seem to understand that you can compensate someone for increased energyprices and they might still reduce their energy consumption (because it’s relative price goes up). Pretty strange stuff.
Club Troppo
Fearlessly dispensing political, legal and economic analysis (and some whimsy) since 2002
There are quite a number of people who appear not to understand the idea of relative price changes leading to substitution: including over here – http://www.catallaxyfiles.com/blog/?p=7091
To be fair Nick, I’m sure Bobby’s stuff sounds a lot better when read out by the man himself.
http://www.youtube.com/watch?v=TVno5kEGLHE
“And so the three bears came home to find Goldilocks had been shorting their beds and speculating with porridge futures. What do you think happened next children?”
I was going to mention RG’s hushed delivery – quite compelling really.