1/10 Today, 63 year ago, Prime Minister Indonesia, Mr. Djuanda, declared unilaterally the use of archipelagic baselines, for joining the outmost islands. The waters enclosed was then declared as internal waters (Deklarasi Djuanda 1957).

UK Energy White Paper is here.

I'll tweet the key points here👇

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Link to press

UK commits to an Emissions Trading Scheme (ETS) from 1 January 2021.

Seems like a win for @beisgovuk, as @hmtreasury was known to be keen on a carbon tax

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Exploring the RAB model for new nuclear, as per @emilygosden article in @thetimes this

From press release, doesn't look like that many big new measures. Not surprising, as next year we're expecting:
▶️ Heat & Buildings Strat
▶️ Industrial Decarb Strat
▶️ Hydrogen Strat
▶️ Net Zero Strat
▶️ Transport Decarb Plan

And

A couple of hours later, and the White Paper is now here.

Powering Out Net Zero Future.

Details to follow

A story ...

In 1994, I was teaching U.S. history and American government at Oak Ridge HS in El Dorado Hills, California.

I had three bright students who were my TAs. The 20th anniversary of Richard Nixon's resignation was a few months away. I decided to have ... 1/

my students -- Sherilyn Peek, Aaron Leahy and Nicole Poimiroo -- take on an extra project. They contacted dozens of people who were in some way involved with the Watergate saga. Politicians, lawyers, political appointees, journalists and others. 2/

They spent weeks, before the internet existed, tracking down addresses. Then they sent a short letter that asked the recipients to respond to one question: What should America learn from Watergate?

Before long, responses started to show up in my mailbox at school. 3/

Archibald Cox replied, and I'm especially struck by this sentence: "...we should be reminded of the corrupt influence of great power, especially when the power is in the hands of someone who is willing to resort to any tactics, however wrong, to retain and increase his power."4/

Richard Kleindienst wrote his response by hand ... "Our Constitution worked! The federal judiciary worked. The Congress and a free press worked. That our Constitution works is the magic of America." 5/

Macron on tensions with Russia: “We continue sometimes to fight against an ideology or an organisation that no longer exists with a geopolitical logic that no longer exists and that has continued to fracture Europe.”

And on Nato: “Nobody can tell me that today’s Nato is a structure that, in its foundations, is still pertinent. It was founded to face down the Warsaw Pact. There is no more a Warsaw Pact.”

In other words, the partly confrontational policy of the West towards Russia is anachronistic.

Yet the "geopolitical logic" of today's more confrontational policy towards Russia has nothing to do with the Warsaw Pact or the Cold War. It's not true that the West is caught in anachronistic thinking.

Sanctions and the renewed focus of Nato on territorial defense was a response towards Russian aggression against Ukraine: Putin started a war of aggression against Ukraine and has annexed parts of the country, with over 13.000 people killed.

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While debt-to-GDP ratios already have a limited but very misunderstood use, it seems economists are finding bright new ways of misunderstanding them. Now we say that when nominal interest rates are lower than nominal growth rates, the

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downward pressure on the debt-to-GDP ratio makes rising government debt and larger government deficits more sustainable and more easily justified.

This is totally confused. When the nominal interest rate is lower than the nominal GDP growth rate, it only means that net...

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borrowers are getting a disproportionate share of growth relative to net lenders. This in and of itself changes the comparability of the debt-to-GDP ratio, so the fact that the ratio may decline tells us nothing about its sustainability which, I'm glad to say, isn't...

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a mistake Olivier Blanchard makes in this article.

At least three things matter. First, whether or not rising debt is sustainable depends almost wholly on underlying conditions in the real economy, and only trivially on the arithmetical relationship between...

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the interest rate and the growth rate. Second, this approach simply assumes away financial distress costs, in which case debt capacity is infinite anyway and the interest rate becomes irrelevant. And third, it assumes that the nominal debt level matters independently...