Tuesday, October 14, 2008

Adding to the wish list

In yesterday's WSJ, Judy Shelton ("A Capitalist Manifesto") dreams of a world of better post-election-post-crisis policy. Her thoughts are all sensible. Fewer real estate asset bubbles from fewer central bank errors is always a good idea. But missing from Shelton's wish list is fewer development bottlenecks from fewer local government regulations. Ed Glaeser's "The Economic Impact of Restricting Housing Supply" makes the point. Wendell Cox elaborates the local effects.