Saturday, April 17, 2010

Aggregate Demand

The intimidating Icelandic word Eyjafjallajökull rather aptly sounds a lot like the English word "awful" and that's what I would call it as a consequence of a volcanic eruption that has grounded  16,000 flights today.


Such a beautiful place, too. Many millions are impacted from the fallout of this exogenous shock as this map of airports impacted in northern Europe shows:

and so soon after earthquakes in Haiti, Peru, Mexico and China, too.

At least Americans don't have the problems Europe has now, at least specifically Greece's debt problem, not yet.

A panel at Princeton University today featured a spectacular sprinkling of eminent Economists. Alice Rivlin, sunny, optimistic Christina Romer, and the uniquely humorous Uwe Reinhardt talked about current issues. A post here covers  some of the main points.

UPDATE: a description of air conditions that explain plane cancellations from CNN:
Guy Gratton, head of the Facility for Airborne Atmospheric Measurements at Britain's Cranfield University, flew into the skies Thursday and saw "a really strange and complex set of layers of ash," with a layer of perfectly clear air suddenly giving way to a layer of ash, he told CNN. If particles of ash enter a jet engine, when they come out they can solidify on turbine blades, he said.

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