EconoMonitor

Economics Blog Aggregator

    Global Macro

  • Paul Krugman

    Notes on Easy Money and Inequality

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  • The Big Picture

    10 Weekend Reads

    Welcome to the weekend. Pull up an easy chair, tall yourself a hot cup of joe, and enjoy our longer form weekend reads: • Making the world’s problem solvers 10% more efficient: Ten years after a Google engineer empowered researchers with Scholar, he can’t bear to leave it (Medium) • Wake Up, Europe by George Soros (New York Review of Books) • No, Americans Are Not All To Blame for the Financial Crisis (New Republic) • Why do we keep repeating Milgram’s experiments? (Aeon) • The Grand Illusion: Does time have a future? Yes, but how much of a future depends on what the ultimate fate of the cosmos turns out to be. (Lapham’s Quarterly) • The man with the golden blood (Mosaic) • What if age is nothing but a mind-set? (NYT Magazine) • Speed ...more

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  • Marc to Market

    Cool Video: Do You Only Use 10% of Your Brain?

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  • Brad DeLong's Grasping Reality...

    Over at Equitable Growth: Is There Really a Profits-Investment Disconnect?: (Late) Friday Focus for October 24, 2014

    Over at Equitable Growth: I think Paul Krugman gets one wrong--or, at least, I need more convincing before I think he gets this one right, in spite of the extraordinary empirical success of my rules (1) and (2): Paul Krugman: The Profits-Investment Disconnect: "Profits are very high... ...so why are companies concluding that they should return cash to stockholders rather than use it to expand their businesses? After all, we normally think of high profits as a signal: a profitable business is one people should be trying to get into. But right now we see a combination of high profits and sluggish investment. What’s going on? One possibility, I guess, is that business are holding back because Obama is looking at them funny. But more seriously, this kind of diverge...more

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  • Marginal REVOLUTION

    Carlsen or Anand?

    The rematch starts in November, but it is by no means obvious that the champion Carlsen is favored.  Anand is separated from his Indian well-wishers and relatives (which helps him), he has been playing well lately, and he feels he has nothing to lose at this point.  It is often easier to win a rematch than to defend a championship. Carlsen’s play has been listless as of late.  Yet he has two factors going for him.  First, he is a better player than Anand, a factor which is obviously important, and second he is younger and has better stamina. Carlsen suffers from having to play in Sochi, which is basically a KGB village with extreme surveillance.  Any chess innovation which he speaks to his seconds in his hotel room or leaves on his hard drive will end up bein...more

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  • Cafe Hayek - Article Feed

    Quotation of the Day…

    (Don Boudreaux) … is from page 67 of the 2007 Liberty Fund edition of Ludwig von Mises’s 1949 magnum opus, Human Action: It is impossible to understand the history of economic thought if one does not pay attention to the fact that economics as such is a challenge to the conceit of those in power. Yes, but only for sound economics – the economics of scholars such as Adam Smith, J.B. Say, Frederic Bastiat, Carl Menger, Alfred Marshall, Frank Knight, Fritz Machlup, Ronald Coase, George Stigler, Milton Friedman, Armen Alchian, Yale Brozen, James Buchanan, Gordon Tullock, Leland Yeager, Harold Demsetz, Gary Becker, Bruce Yandle, Julian Simon, Deirdre McCloskey, Robert Higgs, David Friedman, and George Selgin (and, also, Austrians such as Mises, Hayek, and Israel ...more

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  • Paul Krugman

    Friday Night Gone

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  • naked capitalism

    Links 10/25/14

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  • The Big Picture

    Kiron Sarkar’s Weekly Report

    Reuters reports that the ECB is considering buying corporate bonds as early as Q1 (January) next year, with the decision to be taken in December. Mr Draghi has admitted that the only real option left for the ECB is to increase the size of its balance sheet and such a move makes sense. No doubt, the Bundesbank and German politicians will oppose such a policy, though without this and/or similar actions, the economic climate in the Eurozone (EZ) is set to worsen materially. Mr Weidmann of the Bundesbank states that the risk of deflation in the EZ remains low, which I have to say is optimistic. To date Draghi has succeeded in increasing monetary accommodation, despite the opposition of the Bundesbank and I expect he will continue to do so. However, a January start date seem...more

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  • Cafe Hayek - Article Feed

    Some Links

    (Don Boudreaux) The Free To Choose Network’s new program, Suffer No Fools – a wonderful documentary of life (so far!) of my great colleague Walter Williams – airs on Tuesday, October 28th, at 6:00pm (and again at 12:00am on Oct. 29th) on two Tucson public-television stations: KUAT, channel 6, and KUAS, channel 27. David Friedman argues that, despite some claims to the contrary, his father, Milton Friedman, likely would not today support a carbon tax. Here’s a great interview at Spiked with Reason’s Nick Gillespie.  (HT Walter Grinder) Over at EconLog, Art Carden has some questions for Princesses Anna and Elsa. James Pethokoukis ponders the effect of minimum-wage legislation on restaurant jobs. Speaking of minimum-wage legislation: three d...more

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  • TIME

    The 10 Most Livable Countries in the World

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  • TIME

    3 Amazing Mind Tricks That Will Help You Remember Small Details

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  • naked capitalism

    Adair Turner: The Consequences of Money-Manager Capitalism

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  • naked capitalism

    Jamie Dimon: U.S. Must Create a “Safe Harbor” Where JPM’s Corruption Is Not “Punished”

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  • Economist's View

    Links for 10-25-14

    Monetary policy and inequality in the US - Vox Redistribution between generations - mainly macro China Will Keep Growing. Just Ask the Soviets. - NYTimes.com The Profits-Investment Disconnect - Paul Krugman Yellen´s Inequality Speech Revealed a "Closet Conservative" - Brookings Interview: Prof. David Vines, Oxford University - AceMaxx-Analytics Is the US Current Account Deficit Problem Over? - Econbrowser Which David Brooks Should We Listen To? - CityEconomist David Brooks' Great Adventures in Fantasy Land - Beat the Press Keeping Up with the Joneses on Energy Conservation - Tim Taylor Something Is Dangerously Wrong at the New York Fed - Fiscal Times The Invisible Moderate - Paul Krugman ...more

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  • Marginal REVOLUTION

    China fact of the day

    This year China is set to pay an interest bill of about $1.7tn, an amount not far short of India’s entire GDP last year ($1.87tn) but larger than the economies of South Korea, Mexico and Indonesia. That is from James Kynge at the FT, there is more here. ...more

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  • Marginal REVOLUTION

    Always gamble on an empty stomach?

    So says one new paper on PubMed, by de Ridder D, Kroese F, Adriaanse M, Evers C.: Three experimental studies examined the counterintuitive hypothesis that hunger improves strategic decision making, arguing that people in a hot state are better able to make favorable decisions involving uncertain outcomes. Studies 1 and 2 demonstrated that participants with more hunger or greater appetite made more advantageous choices in the Iowa Gambling Task compared to sated participants or participants with a smaller appetite. Study 3 revealed that hungry participants were better able to appreciate future big rewards in a delay discounting task; and that, in spite of their perception of increased rewarding value of both food and monetary objects, hungry participants were not more in...more

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  • Brad DeLong's Grasping Reality...

    Liveblogging World War II: October 25, 1944: WHERE OH WHERE IS TASK FORCE 34?

    James D. Hornfischer: The Last Stand of the Tin Can Sailors: At 6:35 A.M., as sunrise revealed a grayed-out and hazy dawn, the most powerful concentration of naval gun power the Japanese empire had ever assembled reordered its geometry in preparation for daylight operations. Twenty-five miles to Taffy 3’s north, lookouts on the heavy cruiser Chokai and light cruiser Noshiro reported aircraft approaching. So Halsey’s planes were coming after all, Takeo Kurita must have thought. Almost simultaneously, cat-eyed lookouts on the battleship Nagato spied masts on the horizon visible here and there through the rainsqualls that dropped down from the heavens like gauzy shrouds. An eight-knot easterly wind roused low swells from the sea. From the Yamato’s gunnery platfor...more

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  • VoxEU.org: Recent Articles

    Monetary policy and inequality in the US

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  • The Skeptical Speculator

    Markets mixed, UK economy decelerates, US and Chinese home prices fall

    Markets were mixed on Friday. The S&P 500 rose 0.7 percent to extend its gain for the week to 4.1 percent, the best since January 2013. However, the STOXX Europe 600 fell 0.3 percent to trim its weekly gain to 2.7 percent, still the best this year. Economic data on Friday were also mixed. The UK economy decelerated in the third quarter, growing by 0.7 percent compared with 0.9 percent in the second quarter. The services industry grew 0.7 percent in the third quarter, down from 1.1 percent in the previous quarter, while manufacturing output grew 0.4 percent, down from 0.5 percent. In the US, new home sales rose 0.2 percent in September but data for prior months were revised down. The median sales prices fell 4 percent in September from a year ago, the first decline since...more

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  • International Political Economy Zone

    Will Mitsubishi Outdo Boeing in Jetliners?

    The next Japanese "threat" to US domination?Mitsubishi needs no introduction as a Japanese conglomerate that has heavy industries for nearly everything under the sun aside from diversified interests from banking to brewing. Mitsubishi also has a measure of notoriety for building the A6M Zero fighter plane used for kamikaze attacks towards the end of WWII. During the postwar years, its sophisticated manufacturing facilities allowed it to produce F-15 fighters under license as well.I bring up this bit of history since the Japanese are supposedly embarking on another episode of outdoing their American counterparts. Having long since consigned Detroit to oblivion, the Japanese are allegedly at it again, this time in aerospace as Mitsubishi builds its first jetliner for regi...more

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  • Brad DeLong's Grasping Reality...

    Jeff Madrick, Josh Bivens, Brad DeLong, Ylan Mui: How Mainstream Economic Thinking Imperils America

    EPI: How Mainstream Economic Thinking Imperils America: "

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  • TIME

    Amazon’s Dispute With Hachette Might Finally Be Hurting Its Sales

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  • The Big Picture

    Succinct Summations of Weeks Events 10.24.14

    Succinct Summations week ending October 24th Positives: 1. S&P 500 rose ~ 4% for the week — amazingly is now down less than 1% for the month. 2. Initial jobless claims came in slightly higher than expected but the 4-week moving average fell to the lowest levels since 2000. 3. Mortgage refinance applications rose 23.3% w/o/w as 30-year mortgage rates fell to their lowest levels since May 2013. 4. Consumer prices, bot headline and core rose 0.1% vs flat estimates. 5. Existing home sales came in at 5.17mm, the highest since September 2013. 6. New home sales rose to 467k, the most since ’08. 7. Japanese manufacturing PMI rose to 52.8, a 7-month high. Negatives: 1. Despite the lowest 30-year loan rates in over a year, mortgage applications fell 4.8% w/o/w. 2. New...more

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  • Cafe Hayek - Article Feed

    More Than One Perspective

    (Don Boudreaux) Here’s another letter to my new correspondent from New Jersey: Dear Mr. Sloan: I appreciate your correspondence.  Thank you for it. You ask if I agree that, because successful entrepreneurs “such as [Jeff] Bezos … benefit disproportionately” from government-supplied infrastructure, these entrepreneurs should be taxed at rates higher than those levied on “regular people.” I don’t agree.  My reasons are many, not the least of which is that I doubt that successful entrepreneurs benefit disproportionately from government-supplied infrastructure.  Looking at the non-farm U.S. economy over the years 1948-2001, Yale economist William Nordhaus calculates that successful innovators capture only about two percent of the value to society of...more

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  • Economist's View

    'What Path for Development in Africa -- and Elsewhere?'

    Tim Taylor: What Path for Development in Africa -- and Elsewhere?: As I've pointed out from time to time, the countries of  sub-Saharan Africa have been experiencing genuine conomic growth for the last decade or so, and not just in oil- and mineral-exporting countries, creating what is by the standards of developing economies an expanding middle class. But here comes Dani Rodrik to ask some realistic tough questions in his essay, "Why an African Growth Miracle Is Unlikely," written for the Fourth Quarter 2014 issue of the Milken Institute Review. Rodrik also argues this case in "An African Growth Miracle?" given as the Richard Sabot lecture last April at the Center for Global Development. As Rodrik readily acknowledges, many nations of ...more

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  • Economist's View

    Market Power, 'the Profits-Investment Disconnect,' and the Mal-Distribution of Income

    Maybe we'll finally start discussing something I've been writing about for years with little traction, how market power affects the distribution of income (the disconnect between income and the contribution to final product that occurs when market power exists): The Profits-Investment Disconnect, by Paul Krugman: I caught a bit of CNBC in the locker room this morning, and they were talking about stock buybacks. Oddly — or maybe not that oddly, given my own experiences with the show — nobody brought up what I would have thought was the obvious question. Profits are very high, so why are companies concluding that they should return cash to stockholders rather than use it to expand their businesses? After all, we normally think of high profits as a signal: a p...more

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  • Paul Krugman

    The Profits-Investment Disconnect

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  • Econbrowser

    Guest Contribution: Is the US Current Account Deficit Problem Over?

    Today we are fortunate to have a guest contribution written by Jeffrey Frankel, Harpel Professor of Capital Formation and Growth at Harvard University, and former Member of the Council of Economic Advisers, 1997-99. The latest World Economic Outlook, released this month by the International Monetary Fund, warns that even though global “flow imbalances” are lower than a few years ago, they are still substantial and so US liabilities to foreigners continue to rise each year. “Stock imbalances” remain a problem. Figure 4.1 from Chapter 4, World Economic Outlook, October 2014. The US current account went into deficit in 1982. Thirty years ago, the US Council of Economic Advisers accurately predicted record current account deficits to come and at...more

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  • Beat the Press

    The Ebola Vaccine: How Drugs Can Be Developed Without Patents

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  • Marc to Market

    Ebola, EU Politics and Brazil's Election in Focus

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  • International Political Economy Zone

    US Plan to Strangle China's World Bank Rival, Pt 2

    Today the Asian Infrastructure Investment Bank (AIIB) was born.This is a continuation of a previous post on the US wanting Chinese competition in development lending to just go away despite the likes of the World Bank and Asian Development Bank lauding the developmental benefits of competition. You know, when it comes to actual competition in development lending, the usual American BS, posturing and hypocrisy rear their ugly head. How will China's Asian Infrastructure Investment Bank survive? Depending on your point of view whether this is a good or bad thing, the US has largely succeeded in discouraging developed countries from pledging any funding to the PRC's brainchild. When th1e signatories gather tomorrow, not a one is going to be a developed country. Australia wh...more

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  • Beat the Press

    The Banking Industry Wins On Risk Retention With Mortgages

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  • Beat the Press

    David Brooks' Great Adventures in Fantasy Land

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  • VoxEU.org: Recent Articles

    Macroeconomic policy mix in the transatlantic economy

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  • Greg Mankiw's Blog

    Profile of an Ec 10 Student

    An amazing story, from the NY Times.

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  • The Skeptical Speculator

    Markets rally amid positive economic data

    Markets resumed their rally on Thursday. The S&P 500 rose 1.2 percent and the STOXX Europe 600 rose 0.7 percent. The US 10-year Treasury yield rose six basis points to 2.27 percent. Oil and copper also rose. Positive economic data on Thursday helped boost markets. In the US, Markit's preliminary manufacturing PMI for October showed a fall to 56.2 in from 57.5 in September but remained well in expansion territory while the Chicago Federal Reserve's national activity index jumped to +0.47 in September from -0.25 in August. US economic growth is likely to be maintained after the Conference Board's US index of leading indicators rose 0.8 percent in September. Economic data for the euro area on Thursday were also positive. Markit's preliminary composite PMI for the region f...more

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  • John Quiggin

    The G20: A bonanza for tourism?

    I was contacted by a journalism student here who would some commentary on the rosy projections being made about how the G20 meetings will put Brisbane on the world tourism map, assisted by such initiatives as a month of cultural celebrations (beginning tomorrow) along with “Team Brisbane” and “Global Cafe”. I offered the following response G20 will provide a short-lived but substantial boost in demand for accommodation and restaurant services in the Brisbane CBD, associated with the arrival of thousands of delegates and media representatives. This will be offset by a negative effect on all other kinds of tourism, not only because of the difficulty of obtaining accommodation but because of the lockdown and other security measures associated with t...more

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  • Rick Bookstaber

    Ex Ante versus Ex Post Social Policy

    I have written various posts on social policy related to the question of whether and how we redistribute income. One argument of equal opportunity and social egalitarianism is that it is fair to control for the randomness of life. For example, take the luck of the draw in who your parents are. If your best career choice was to be born into a wealthy family, if you got ahead because your father could pull strings to get you an internship at a big investment bank; because you built up your high school resume by spending a summer building houses in Tibet while a classmate had to spend the summer working at the 7-11; or because you could afford two years of one-on-one tutoring for the SAT, the result might be to score higher in an objective standard of selection and have a ...more

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  • Worthwhile Canadian Initiative

    The New Mercantilists

    In its search for new revenues, Ontario commissioned a government panel to examine how to wring more money out of government assets.  In recent days, the panel led by TD Bank CEO Ed Clark has revealed several ideas including selling off Hydro One’s distribution business, restructuring Ontario Power Generation so it provides more revenues and modernizing the Liquor Control Board so that it can generate more revenues via internet sales.  Moreover, Ed Clark also suggested that the Beer Store – which is a private monopoly sanctioned by the Ontario government – should also be used to provide more money for the Ontario government. I am not surprised that the head of a major chartered Canadian bank is so comfortable with monopoly given that the Canadian banki...more

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  • Marc to Market

    A Few Recent Provocative Posts

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  • Econbrowser

    Philadelphia Fed Coincident Indices: Kansas and Wisconsin Continue to Lag Nation

    Low ranked by ALEC-Laffer, California and Minnesota continue to power along, as shown in data released today by the Philadelphia Fed. Figure 1: Log coincident indices for Minnesota (blue), Wisconsin (bold red), Kansas (green), California (teal), United States (black), seasonally adjusted, all normalized to 2011M01=0. Source: Philadelphia Fed and author’s calculations. Another way of visualizing the data is to show the cumulative growth relative to that of the United States. This is shown in Figure 2. Figure 2: Log coincident indices for Minnesota (blue), Wisconsin (bold red), Kansas (green), California (teal), seasonally adjusted, all expressed relative to that of the United States and normalized to 2011M01=0. Source: Philadelphia Fed and author’s calcula...more

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  • iMFdirect - The IMF Blog

    Does Raising the Minimum Wage Hurt Employment? Evidence from China

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  • CIPE Development Blog

    Case Study: Public-Private Dialogue in Senegal

    The latest case study from the forthcoming publication Strategies for Policy Reform discusses CIPE’s experience assisting the advancement of policy dialogue in Senegal that supports market-oriented reforms and private sector development. READ MORE ...more

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  • Worthwhile Canadian Initiative

    Old-fashioned stability, and robustness

    There are two different monetary policies. The green monetary policy gives you the green AD curve, and the red monetary policy gives you the red AD curve. Both monetary policies give you exactly the same equilibrium P* and Y*. (You can interpret P* as the price level, or as the inflation rate, as you wish.) Which monetary policy is best? If you are an old economist, like me, you will probably say the green monetary policy is better. Because the red monetary policy leads to an unstable equilibrium. If you are a young economist you will probably laugh at me for saying that. You will say that, according to the model I have presented on that diagram, both monetary policies are equally good, because they both create exactly the same result. And I cannot say whether either ...more

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  • John Quiggin

    Gough Whitlam

    More than any other Australian political leader, and arguably more than any other political figure, Gough Whitlam embodied social democracy in its ascendancy after World War II, its high water mark around 1970 and its defeat by what became known as neoliberalism in the wake of the crises of the 1970s. Whitlam entered Parliament in 1952, having served in the Royal Australian Air Force during the War, and following a brief but distinguished legal career. Although Labor had already chosen a distinguished lawyer (HV Evatt) as leader, Whitlam’s middle-class professional background was unusual for Labor politicans Whitlam marked a clear break with the older generation of Labor politicians in many otherrespects. He was largely indifferent to the party’s socialist objectiv...more

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  • Free exchange

    The human-driven driverless car

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  • VoxEU.org: Recent Articles

    The ECB as lender of last resort?

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  • International Political Economy Zone

    Territorial Disputes & PRC Travel Warnings on Philippines

    Good luck finding these sorts of wedding photo ops back in the PRC.An area of study in international relations that nobody has looked at is this one: countries locked in disputes engaging in travel warnings against each other. Since most countries today are WTO members, using discriminatory measures against others' products and services is more difficult to do than in the per-WTO period. So, how are you going to get back at the offending party? Try travel advisories warning that the country in question is some kind of godforsaken hellhole where terrorism is rampant and the rule of law is an illusionary concept.As it so happens, China has been a particularly avid user of travel warnings against all and sundry transgressors of the will of the Chinese people (or at least t...more

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  • The Skeptical Speculator

    Stocks mixed as US inflation stays muted, Japan's trade deficit widens

    Stocks were mixed on Wednesday. The S&P 500 fell 0.7 percent but the STOXX Europe 600 rose 0.7 percent. Helping to boost markets on Wednesday were continued reports of the European Central Bank buying bonds, this time Spanish covered bonds, after reportedly having bought French and Portuguese securities earlier this week. The Federal Reserve may also be able to continue to support markets with monetary stimulus after US consumer prices rose just 0.1 percent in September. Meanwhile, though, the Bank of Japan's monetary policy has apparently helped push down the yen without helping Japan's trade balance. Japan's trade deficit rose 1.6 percent in September from the previous year. While exports rose 6.9 percent, imports also rose by 6.2 percent....more

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  • Econbrowser

    Has Wisconsin Employment Growth Really Been Normal over the Last Four Years?

    Integration, cointegration and the evaluation of time series data for public policy analysis. As my first economics teacher said, “ya gotta be careful”. Bruce Thompson at Urban Milwaukee’s Data Wonk writes: …the data shows Gov. Walker has had little impact, positive or negative, on how the state grows jobs. Dr. Thompson appeals to data (which is good and a vast improvement over a lot of commentary), and focuses on the ratio of Wisconsin to national nonfarm payroll (NFP) employment (the documentation is unclear, but my graph using NFP looks the same as his, so I’ll assume it’s the establishment series and not the household series he’s using). He then shows that a linear regression on the ratio over the Doyle years predicts well ...more

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  • CIPE Development Blog

    Does Democracy Still Matter?

    In his June 1982 Westminster Address , which laid the groundwork for the creation of CIPE and the National Endowment for Democracy (NED), President Ronald Reagan established an emerging role for the U.S. emerging as a leader in supporting democracy around the world. Today that role is being questioned. At an October 20, 2014 conference hosted by the Kennan and Foreign Policy Research Institutes,... ...more

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  • iMFdirect - The IMF Blog

    Natural Gas: The New Gold

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  • Fabius Maximus

    The truth emerges about Afghanistan, an indictment of our war. Now comes the hard part: learning from failure.

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  • John Quiggin

    Gough Whitlam open thread

    I’m hoping ot write an appreciation of Gough Whitlam’s contributions to Australian society soon. But in the meantime, I’ll open this thread for general discussion. I’m happy to entertain discussion of failures as well as successes, but I don’t welcome personal attacks on the recently departed in general, and certainly not in Gough’s case, so please keep discussion respectful. ...more

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  • Worthwhile Canadian Initiative

    How to deliver tax relief for Canadian families

    In the 1960s, my mother's monthly family allowance cheque paid for a week's groceries. In 2011, the median Canadian two-parent family had an income of just over $90,000. At that level of net income, a family with two children receives Canada Child Tax Benefit worth $87 per month. That doesn't come close to paying for a week's groceries.  The Harper government has already gone some way to providing greater tax recognition for the costs of children through the introduction of the Universal Child Care Benefit and the introduction of a non-refundable child amount credit. Both of these are good policies.  Yet they are overlaid upon a CCTB system that contains fundamental flaws. First, because the CCTB is clawed back as a family's net income i...more

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  • CIPE Development Blog

    Getting Creative about Saying “No!” to Corruption in Lebanon

    CIPE partner the Lebanese Transparency Association (LTA) recently wrapped up a banner month in its fight against corruption in Lebanon, using everything from stand-up comedy and mimes to one-on-one case work to deliver its "No Corruption" message. READ MORE ...more

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  • Free exchange

    A market unto itself

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  • Free exchange

    Breaking the rules

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  • Fabius Maximus

    We awake from fears of an Ebola pandemic in America. Now let’s ask who’s responsible…

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  • iMFdirect - The IMF Blog

    Banks Should Help, Not Hinder the Economy

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  • Fabius Maximus

    DoD shows its strength, mobilizing to protect us from Ebola (a sad story about America).

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  • Greg Mankiw's Blog

    Charles Murray on Ayn Rand

    A great and balanced essay.  Thanks to Alex Tabarrok for the pointer.

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  • Alpha.Sources

    Another Eurozone Crisis Ahead?

    Calamities happen in financial markets, and usually when investors least expect and are least prepared for it. In the euro area, weak growth in the past six months and the inability of the ECB's measures to turn asset markets arounds have led investors to, once again, revisit their sovereign debt crisis playbooks.  This is understandable, but also now raises a fundamental question. If we are about to tumble into round 2 (or 3?) of the sovereign debt crisis, Eurozone bears may still prevail holding on to the recent trend in equities. But if we are not, the only trade that currently makes sense is to buy equities and short benchmark bonds in the euro area. Narrow money growth and ECB easing would indicate this to be a good bet, but the lack of sovereign QE amid incre...more

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  • Rick Bookstaber

    My Recent Work on Agent-based Modeling

    As is obvious by looking at the time span between recent posts, I have not been active in blogging. I am planning to get back into things.  As a start, to help catch up on what I have been doing, here are a couple of papers and a presentation I recently made on the area of my focus, using agent-based modeling to help assess financial vulnerabilities.The model is presented here.For a concise presentation on the model and its application you can look at a talk I did in August at the Newton Institute for Mathematical Sciences at Cambridge University.  (Despite what is suggested by the venue, I did the presentation mathlessly).Related to the model is work I have been doing to develop a map of sorts for the key agents in the financial system and the ways in wh...more

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  • Greg Mankiw's Blog

    Head Section Leader in Ec 10

    Love teaching introductory economics?  Want to live in the Boston area?  Well, then, I have a job for you.

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  • Dani Rodrik's weblog

    Services, manufacturing, and new growth strategies

    I gave a talk yesterday on New Growth Strategies at the World Bank, which was more or less an elaboration of this short piece. I argued that industrialization had pretty much run out of steam as a growth strategy, that services would need to be the focus going forward, and that this required in turn a different policy mindset about how to increase productivity. In particular, I argued that policies focusing on generating a sequence of sectoral “winners,” which worked so  well in manufacturing (garments to car seats to cars to electronics), would have much smaller payoff in services, in view of the non-tradability of most service segments. I suggested further that, even under the best of circumstances, a services-oriented strategy would yield lower growth than ...more

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  • Jeffrey Frankel's Blog

    The Return of Voodoo Economics

    Paul Krugman’s column in the New York Times today talked of the revival of “Voodoo economics” by some Republican politicians.  This refers to the Laffer Proposition that a cut in income tax rates stimulates economic activity so much that tax revenue goes up rather than down.   Gov. Sam Brownback, who is running for re-election in Kansas, has had to confront the reality that tax revenues went down, not up as he argued they would, when he cut state tax rates. I disagree with one thing that Krugman wrote in his column: the idea that there was a long break,  particularly after George W. Bush took office, during which Republican politicians did not push this line.  To the contrary, I have collected many quotes from George W. Bush and his top officials claiming the...more

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  • Jeffrey Frankel's Blog

    Piketty’s Fence

    Most of the reviews of Thomas Piketty’s book Capital in the Twenty-First Century have already been written.  But I thought it might be best to read it all the way through before offering my own thoughts on this book, which startlingly rose to the top of the best seller lists last April.  It has taken me five months, but I finished it. One of the things the book has in common with the Karl Marx’s Das Capital (1867) is that it serves as a rallying point for the many people who are passionately concerned about inequality, regardless whether they understand or agree with the specific arguments contained in the book in question.  To be fair, much of what Marx wrote was bizarre and very little was based on careful economic statistics.  Much of what Piketty says is ba...more

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  • Smart Economy

    Belgian Researchers Discover Way to Block Cancer Metastasis

      Free Radicals and Cancer Metastasis KEY QUOTE:  The Belgian team led by Sonveaux has found the mechanism by which cells can control changes caused at least in part by free radicals. The free radical involved in the metastacism of tumor cells is superoxide. Tests in mice on melanoma and breast cancer cells showed that administering an antioxidant stopped the production of superoxide. That, in turn, prevented cell changes that would lead to metastasis.   N.B. This is confirmation why Carbon 60 Hydrated Fullerenes stops cancer metastasis, by scavanging free radicals that cause cancer. Ukrainian scientists have known this for over ten years!!--Walter Derzko September 18, 2014 12:28 AM                 WASHINGTON— Cancer remains one of the dea...more

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  • Smart Economy

    New non-invasive technique could revolutionize the imaging of metastatic cancer

                     IMAGE:   This is Paul Fisher, M.Ph., Ph.D., Thelma Newmeyer Corman Endowed Chair in Cancer Research and co-leader of the Cancer Molecular Genetics research program at VCU Massey Cancer Center, chairman of... Click here for more information.      Bioluminescence, nanoparticles, gene manipulation – these sound like the ideas of a science fiction writer, but, in fact, they are components of an exciting new approach to imaging local and metastatic tumors. In preclinical animal models of metastatic prostate cancer, scientists at Virginia Commonwealth University Massey Cancer Center, VCU Institute of Molecular Medicine and Johns Hopkins Medical Institutions have provided proof-of-principle of a new molecular...more

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  • Smart Economy

    Space: The final frontier… open to the public

      UTMB research shows average people healthy enough for commercial space travel Historically, spaceflight has been reserved for the very healthy. Astronauts are selected for their ability to meet the highest physical and psychological standards to prepare them for any unknown challenges. However, with the advent of commercial spaceflight, average people can now fly for enjoyment. The aerospace medicine community has had very little information about what medical conditions or diseases should be considered particularly risky in the spaceflight environment, as most medical conditions have never been studied for risk in space — until now. The aerospace medicine group at the University of Texas Medical Branch at Galveston recently studied how average people with common ...more

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  • Alpha.Sources

    Where Are My Foreign Assets When I Need Them?

    How do you show the challenge of the eurozone periphery in one chart? Well, it is difficult but the representation below is a good pick in my view. A structurally negative net foreign asset position is a very tough hurdle to overcome when in a currency union, saddled with poor demographics and need net external demand to boost national income. Think of the periphery as Japan and Germany without(!) the strong net foreign asset position.  These countries seem to have grown old before getting rich and without the ability to devalue in nominal terms, the outlook is not good.    --- Picture is courtesey of Pantheon Macroeconomics and has also been posted on Twitter.  ...more

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  • Alpha.Sources

    The Italian Economy Remains Stuck ...

    Italy has the dubious honor of the being the first eurozone economy to re-enter recession after the decidedly tepid recovery since 2012. This is bad news for an economy struggling with steadily increasing government debt and no real solution on how to pay off its mounting liabilities. What is even worse is that it looks as if the economy is not about to exit its malaise anytime soon. --- Picture is courtesey of Pantheon Macroeconomics and has also been posted on Twitter.    ...more

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  • Dani Rodrik's weblog

    Back to sanity on economic convergence

    It’s been interesting to watch how the conventional wisdom on rapid convergence – developing countries closing the gap with the advanced economies – has been changing over the last few years. It wasn’t so long ago that the world was in the grips of emerging-markets mania, projecting wildly optimistic growth numbers decades into the future. For the last 4-5 years, I have been writing that the pace of convergence we have experienced over the last two decades is unsustainable. There were temporary factors (cheap capital, low interest rates, high commodity prices, rapid Chinese expansion) which would begin to reverse themselves. And perhaps most importantly, export-oriented industrialization was running out of steam much earlier, even in the relatively successful co...more

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  • Institutional Economics

    I am leaving CIS and returning to financial markets

    This is my last week at CIS. I will be returning to financial markets from whence I came back in 2008. Thanks to Greg Lindsay for giving me a platform to participate in the public policy debate over the last few years. Thanks also to those who contributed to Policy while I was editor over the last 18 months. Policy will continue under a new editor. My new employer won’t be paying me to blog or tweet during business hours, so you will be hearing even less from me on what is already a very low frequency blog. I will still post material here from time to time and link to what I am doing when appropriate. Needless to say, nothing on this web site should be attributed to current or previous employers. This blog has followed me around in various roles since 2003, back whe...more

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  • Jeffrey Frankel's Blog

    Modi, Sisi & Jokowi: Three New Leaders Face the Challenge of Food & Fuel Subsidies

    In few policy areas does good economics seem to conflict so dramatically with good politics as in the practice of subsidies to food and energy.  Economics textbooks explain that these subsidies are lose-lose policies. In the political world that can sound like an ivory tower abstraction.   But the issue of unaffordable subsidies happens to be front and center politically now, in a number of places around the world.   Three major new leaders in particular are facing this challenge:  Sisi in Egypt, Jokowi in Indonesia, and Modi in India. The Egyptian leader is doing a much better job of facing up to the need to cut subsidies than one might have expected.  India’s new prime minister, by contrast, is doing worse than expected – even torpedoing a long-anticipated ...more

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  • Institutional Economics

    Wayne Swan on Monetary Offset and the GFC

    Former Treasurer Wayne Swan is releasing some of his briefing notes from the GFC ahead of the launch of his upcoming memoir, The Good Fight. The first instalment from a meeting at the Prime Minister’s residence with the Prime Minister, Treasury Secretary and other senior officials on 4 August 2008 is remarkable for its acknowledgement of monetary offset. Indeed, the notes could just as easily have been written by Scott Sumner: There are three broad considerations the Government would need to keep in mind in taking a decision to engage in discretionary [fiscal] action: • The Reserve Bank through its control over interest rates, determines the overall level of aggregate demand in the economy, and the Bank would likely take account of any fiscal stimulus in its monet...more

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  • Institutional Economics

    The Financial System Inquiry and Macro-Pru

    I have an op-ed in Business Spectator endorsing the sceptical approach to macro-prudential regulation taken in the Murray inquiry’s interim report: Macro-prudential policies are seen as providing policymakers with a more targeted set of policy instruments that might complement or even substitute for changes in official interest rates. However, these instruments also implicate policymakers in making much finer judgements about risks to financial stability as well as the more traditional concern of monetary policy with price stability. A blunt instrument like monetary policy encourages caution in making such judgements. By contrast, more targeted counter-cyclical quantitative controls are a standing invitation to micro-manage credit allocation, but do not in thems...more

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  • CYNICONOMICS

    Technical Notes for ‘Never Mind Their Distrust of Data and Forecasts…’

    This is a short appendix for our earlier post, “Never Mind Their Distrust of Data and Forecasts; Austrians Can Help You Predict the Economy,” in the usual Q&A format. Why do you show three different series in the first chart? We show “Net Private Debt from Census Bureau” because it has the longest history. We use it later to calculate 5-year credit growth figures for the period before the Fed’s “flow of funds” becomes available. We deduct financial and real estate corporation debt in the second dotted line to show that private debt growth in the late 1920s wasn’t skewed by financial debt (as it was in the 2000s). We can only back out financial debt from 1926 (not enough data to use in the “savings rates and credit growth” chart), but this series...more

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  • CYNICONOMICS

    Never Mind Their Distrust of Data and Forecasts; Austrians Can Help You Predict the Economy

    [O]f all the economic bubbles that have been pricked, few have burst more spectacularly than the reputation of economics itself. – From The Economist, July 16, 2009. It’s been five years since the The Economist magazine published the critical commentary  excerpted above. In hindsight, the noted reputational damage was neither lasting nor spectacular. As of today, we’d say it’s almost non-existent. Mainstream economists continue to dominate their profession and wield huge influence on public policies. They merely needed to close ranks after the financial crisis and wait for people to forget that their key theories and models were wholly discredited. Meanwhile, heterodox economists who stress credit market risks and financial fragilities – the Austrians, the Mi...more

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  • CYNICONOMICS

    Technical Notes for ‘Planning for Future Rate Hikes…’

    This is a short appendix for our earlier post, “Planning for Future Rate Hikes: What Can History Tell Us that the Fed Won’t?,” presented in Q&A format. I don’t understand the calculations in your charts – can you walk me through one of the figures? Sure, we’ll do this for the figure depicted by the first bar (6.1%) on the real fixed investment chart: We start by isolating all 4 quarter periods over which the fed funds rate dropped by more than 2%. There were 37 such periods in our data set, as shown in the first chart of the main article. For each of these periods, we record the growth in real fixed investment over the next 4 quarters. This is what we mean by lagged growth – we’re lagging the economic outcome against the change in interest rate...more

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  • Dani Rodrik's weblog

    My moonlighting career of the last 4 years

    At long last, Turkey's consitutional court has reversed the conviction of the more than 200 officers previously found guilty in the bogus Sledgehammer coup plot, leading to the release on June 19th of all those in jail (including my father in law). Even though a retrial is to take place, the ruling is a coda to the last four-and-a-half years during which my wife and I moonlighted as criminal investigator, forensic analyst, and political activist. It has been a truly surreal and bizarre experience, given how so many intelligent people bought into -- and refused let go of -- a coup plot that was patently fictitious.     So I thought this would be a good time to post a longish account of my involvement in the story. I wrote it as much to make sense of it to...more

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  • The Becker-Posner Blog

    Farewell

    In memoriam: Gary S. Becker, 1930-2014. The Becker-Posner blog is terminated. Richard A. Posner

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  • Rick Bookstaber

    Piketty Myopia

    Thomas Piketty's book Capital in the Twenty-First Century has been lauded for its detailed analysis of data and for the end result of that analysis, a sweeping statement of an inexorable widening of the distribution of wealth between those with capital and those without. There is unabashed glee among those who have bemoaned the plight of the middle class as the one percent has pulled away, waving the book as the gotcha ya for income redistribution.  As should be clear from some of my previous posts, I am one of those people bemoaning the plight, but I am a little slower than many others to take up the Piketty banner. The book's argument looks at wealth and growth data over the past three centuries, and takes its implications forward with a similar, historical scope...more

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  • Felix Salmon

    Post Felix

    By Shane Ferro Today is Felix’s last day at Reuters. Here's the link to his mega-million word blog archive (start from the beginning, in March 2009, if you like). Because we’re source-agnostic, you can also find some of his best stuff from the Reuters era at Wired, Slate, the Atlantic, News Genius, CJR, the NYT, and NY Mag. There’s also Felix TV, his personal site, his Tumblr, his Medium archive, and, of course, the Twitter feed we all aspire to. Counterparties may have been the brainchild of Felix and the recently departed Ryan McCarthy, but the blog, site, newsletter, and Twitter feed will continue to exist in their absence. It will be run by Ben Walsh and Shane Ferro, with some non-trivial amount of snark. Today we focus on the reason Felix started Counterparti...more

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  • Felix Salmon

    The Piketty pessimist

    By Felix Salmon This chart comes from the World Economic Forum’s 2014 Global Risks Report, which came out just before Thomas Piketty’s book started becoming the topic of discussion in economic and plutocratic circles.* You can clearly see what you might call the rise of inequality-as-an issue: before 2012 it’s nowhere to be found, but since then it’s been consistently in the top spot. My prediction is that in 2015, thanks to Piketty, the WEF will start talking less about income inequality, and more about wealth inequality. The big question, though, is whether inequality is really much of a risk at all. After all, from the point of view of the average billionaire WEF delegate, inequality would seem to look much more like a reward. Chrystia Freeland has a hopeful...more

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  • Felix Salmon

    The most expensive lottery ticket in the world

    By Felix Salmon No Exit, the new book from Gideon Lewis-Kraus, should be required reading for anybody who thinks it might be a good idea to found a startup in Silicon Valley. It shows just how miserable the startup founder’s life is, and raises the question of why anybody would voluntarily subject themselves to such a thing. A large part of the answer is that Silicon Valley is gripped by a mass delusion, compounded by a deep “fake it til you make it” attitude toward success. Why do so many people in Silicon Valley want to be founders? Because every founder they meet is always killing it, crushing it, having massive success, just about to close a huge round, etc etc. At some level, they must know this is impossible: if 90% of startups fail, it simply can’t be the...more

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  • The Becker-Posner Blog

    Sabbatical Notice

    Starting this weekend, we will be taking a one-month sabbatical from blogging. We will resume at the end of that period.

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  • The Becker-Posner Blog

    The Embargo of Cuba: Time to Go- Becker

    The US embargo of Cuba began in 1960, a year after Fidel Castro turned this island toward communism. It was extended to food and medicines in 1962, the same year as the showdown with Russia over the installation of missiles there. The embargo has prevented American companies from doing business with Cuba, and discouraged tourism to Cuba. The American government also tried with quite limited success to prevent other countries from trading with Cuba. In general economic embargoes are undesirable because they interfere with free trade among countries. Yet a case could be made for an embargo against Cuba. Castro not only allowed Russian missiles to be installed in Cuba, just 90 miles from Florida, but was also actively trying to interfere in other countries by sending troop...more

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  • Stefan Karlsson's blog

    New Blog Address: http://stefankarlssoneng.wordpress.com/

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  • Stefan Karlsson's blog

    Ukraine Crisis Isn't Over

    So now the so-called protestors have overthrown democratically elected President Yanukovich in what is in effect a coup. It is unclear what will happen, and how Russia and Yanukovich and his supporters will act, but this is almost certainly not the end of it.Indeed, how could it be the end? Some people argue that protestors were motivated by anger over corruption and abuse of power from Yanukovich. But while Yanukovich is no doubt corrupt and some protestors may indeed have been motivated by anger over that fact, the opposition movement led by Yulia Tymoschenko is just as corrupt as Yanukovich, so if they prevail, that won't mean less corruption and abuse of power.No, what this conflict is really about is that today's Ukraine is an artificial state created by Soviet com...more

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  • Stefan Karlsson's blog

    How Old Posts Can Become Popular Again

    Suddenly, my post about why Ukraine should be divided between its anti-Russian and pro-Russian parts has seen a dramatic increase in page views. That is no doubt related to the latest escalation of Ukraine's political crisis with both government forces and the neo-Nazi elements of the opposition increasingly using violent means in the confrontation. Ukraine is dangerously close to a full scale civil war. Let's hope that it doesn't come to that. Ukraine has been ravaged for a century by wars, German Nazis, Communism, corruption and ethnic conflict, to add a(nother) civil war would be really cruel. I remain convinced that secession is the best way to solve the conflict peacefully....more

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  • The Oil Drum - Discussions about Energy and Our Future

    The Oil Drum writers: Where are they now?

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  • International Political Economy at the University of North Carolina

    Why US Financial Hegemony Will Endure

    Will and I have a piece, now ungated, over at a fantastic new online magazine called Symposium. Our article translates much of the main points of our Perspectives Piece (co-authored with Thomas and Andy Pennock) for popular consumption. We are also blogging over there this week in support of the article. Please do check out our writing this week on the magazine's website, as well as the other great content on the site....more

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  • International Political Economy at the University of North Carolina

    Foreign Direct Investment, Human Rights, INGOs

    One of the major areas of underdeveloped research within political science is the interaction between non-state actors. From an international political economy perspective, the literature has largely ignored the interaction of various non-state actors that are growing in importance, and its effects on different forms of trade. In a recently published article "Avoiding the Spotlight: Human Rights Shaming and Foreign Direct Investment" by Colin Barry, Chad Clay and Michael Flynn, they lay the foundation for examining this interaction. They examine the interaction between non-state actors (INGOs) and multinational corporations (MNCs) and the extent to which private actors' choices to invest in countries are affected by the reputational costs of doing business in those...more

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  • The Oil Drum - Discussions about Energy and Our Future

    The Last Post

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  • The Oil Drum - Discussions about Energy and Our Future

    The House That Randy Built

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  • International Political Economy at the University of North Carolina

    Verizon, Vodafone, and Measuring FDI

    Recently back from APSA in Chicago, I've been reflecting on the state of our knowledge about FDI (or perhaps more accurately, cross-border management stakes in enterprises). That, and working on my dissertation, applying for academic jobs, and teaching. Oh, and telling everyone who'll listen about my Optimus Prime sighting on Michigan Ave.Anyway, I find a post-conference review of the discipline is generally a good way to consider potentially fruitful lines of new inquiry. In my experience, the quality of papers at conferences can be rather hit-or-miss. This generally fits into my view of conferences as important sources of external deadlines for getting drafts done as well as interacting with other scholars in more informal settings such as the hotel bar/lobby/over-cro...more

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  • Paul Kedrosky's Infectious Greed

    Twitter Digest: 2013-06-09

    Given that I block NSA & PRISM tweets, was entertaining tuning into twitter & trying to figure why everyone was on about Lord Snowdon -> Turned on GoT tonight just in time to catch Daenerys reenacting her Level 2 YMCA gymnastics pageant. -> How Not to Be Alone | Jonathan Safran Foer – http://t.co/HMFxg75lfh http://t.co/DzAtvWBQJr -> Excellent, but fellow sports-med geeks only: Sports and exercise-related tendinopathies: a review – http://t.co/WGkhRlO6Uz -> ...more

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  • Paul Kedrosky's Infectious Greed

    Twitter Digest: 2013-06-07

    Photo-set: Flooding Across Central Europe – http://t.co/8G6j8teCbd -> CDC Update: Severe Respiratory Illness Associated with Middle East Respiratory Syndrome Coronavirus – http://t.co/hWqN1338VN -> Col Flagg: Have you ever heard of Malaysian Chest Implosion Torture? Radar: No. Coll Flagg: Good. It hasn’t been invented… yet. -> tl;dr: There are Manchurian Candidate engineers at large tech cos that have stolen SSL root cert and NSA is using it for cattle mutilation. -> Brian: …Will you please listen? I'm not the Messiah! Do you understand? Honestly Woman: Only the true Messiah denies his divinity! -> ...more

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  • Paul Kedrosky's Infectious Greed

    Twitter Digest: 2013-06-05

    FRED: Free Energy Data – http://t.co/90H7GVDazO -> Solipsisms ‘r’ us, courtesy of my friends at @thinkup: I apparently mention me a lot – http://t.co/9rTRXvBM9D -> Almost 10,000 words on soccer/Italy/economics/racism by @wrightthompson? Yes, & it’s super. Go. http://t.co/g4sgEFLkIC -> When The Beautiful Game Turns Ugly: A journey into the world of Italy's racist soccer thugs http://t.co/nckrbeLPfs -> Can’t remember last time I read an OpEd or column. Do those still exist? -> ...more

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  • The Street Light

    Cyprus and Eurozone Bank Deposits

    To me, the central issue raised by this week's Cyprus debacle is how it has affected confidence across the eurozone.  To what degree has the possibility of insured depositors at a eurozone bank losing a portion of their deposits affected the mindset of depositors?  To what degree has ECB acquiescence to this possibility undermined the notion that deposit insurance in the eurozone means the same thing in all countries?  And to what degree has the ECB's direct threat to end support for Cyprus's banking system in the event that the government of Cyprus can not arrange sufficient funds to meet its conditions made a farce of its earlier promise to "do whatever it takes to preserve the euro"?These, to me, are the interesting questions prompted by this week's ev...more

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  • London Banker

    Chop Off Their Hands . . .

    President Truman famously called for a one handed economist. The Carolingian kings of France would have accommodated him. They realised that a kingdom required a common currency under the control of the king and well regulated markets to sustain the confidence of the people. At first mints were established widely, spread across the kingdom. Local barons began to profit from debasing the coinage, undermining confidence in the monetary system. So Charles the Bald established mints under his direct control and regulated the issue of coins: C.12. Following the custom of our predecessors, just as it is found in their capitularies, we decree that in no other place in all our kingdom shall money be made except in our palace, and in St. Josse and Rouen, which right in th...more

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  • The Street Light

    When the Fed Chair is an Academic

    The big economic news of the week was, in fact, big economic news: the Fed's announcement of significant changes from past practice in the the quantity of its next round of large scale asset purchases ("unlimited"), and in the timing of any future reversal of this expansionary policy ("a considerable time after the economic recovery strengthens").I view this as a pretty fundamental shift in how the Fed hopes to affect the economy.  Rather than trying to push economic activity one way or the other through its management of interest rates (which can alter economic activity through its portfolio-rebalancing and wealth effects, for example), the Fed is now quite explicitly trying to affect economic activity by altering interest rate and inflation expectations.  As...more

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  • London Banker

    For Want of a Nail, the Ship Was Lost

    Imagine a great ship dominating the skyline on a distant sea. Imagine the complexity of that ship: keel, ribs, planks, masts, spars, and an infinite number of less readily named components. Each component was hand-crafted by a craftsman skilled in his trade, to precise requirements, and secured in position to take the stress and strain of a life at sea.Now imagine a crew. They didn't build the ship. The crew are told that the one and only purpose of the ship is to realise a profit for every man jack aboard. Any hand not contributing a profit will be turned ashore. Down below in the ship are nails. Thousands and thousands of nails. Nails are useful. Nails are much sought after in every port the ship enters. Nails can be readily sold and never traced. The crew h...more

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  • London Banker

    Lies, Damn Lies and LIBOR

    I've been hesitant to write about the LIBOR scandal because what I want to say goes so much further. We now know that Barclays and other major global banks have been manipulating the calculation of LIBOR through the quotation data they provided to the British Bankers Association. What I suspect is that this is not a flaw but a feature of modern financial markets. And if it was happening in LIBOR for between 5 and 15 years, then the business model has been profitably replicated to many other quotation-based reference prices.Price discovery is not a sexy function of markets, but it is critical to the efficient allocation of scarce capital and resources, and to the preservation of the long term wealth of investors and the economy as a whole. If price discovery is compr...more

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  • The Street Light

    Government Job Destruction

    Another jobs report in the US, another month where part of the private sector's job creation was undone by continued job destruction by the government sector. The 15,000 additional jobs lost in April brings total job losses in the government sector since January 2010 to over 500,000. While the US has not quite been experiencing European-style austerity over the past two years, that's still a pretty tough headwind to fight as it emerges from recession. ...more

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