More in Global Economy


4 months

Dorothy Sayers: On Susceptibility to Propaganda and Advertisement

Dorothy Sayers (1893-1957) is probably best-remembered as the author of the (fabulously good) Lord Peter Wimsey detective novels and stories. But she also received first-class honors modern languages and medieval literature from Oxford in 1915, before women were officially awarded degrees, and later in life also published books of poetry, theology, and a well-regarded translation of Dante's Divine Comedy. In 1948, she wrote an essay titled "The Lost Tools of Learning" (available various places on the web). A quick taste:

4 months

George Stigler: Market Failure Much Smaller than Political Failure

George Stigler once made the case for a market-based economy (in an entry about "Monopoly" in the Concise Encylopedia of Economics) just by arguing that it beats the alternatives. 

4 months

Why The Next ECB Stimulus Plan May Fail

In June 2014, I wrote an article called Draghi’s Plan does not fix Europe. It explained that the structural challenges of the eurozone - high government spending, excessive tax wedge, lack of technology leadership and demographics - were not going to be solved by a round of quantitative easing.

4 months

How Adam Smith's Idea of the Division of Labor Led to the Digital Computer

Herbert Simon and Allen Newell tell the story of how Adam Smith's ideas directly led to the development of the digital computer in an address delivered to the Twelfth National Meeting of the Operations Research Society of America, Pittsburgh, Pennsylvania, November 14, 1957. The lecture was published in Operations Research, January-February 1958, under the title "Heuristic Problem Solving: The Next Advance Operations Research" (pp. 1-10). For those who like their stories with some credentials attached, Simon and Newell shared the Turing prize, sometimes referred to as the "Nobel prize in computing" in 1975, and Simon won the Nobel prize in economics in 1978.

4 months

Chinese Currency Manipulation – Trump’s Petard

·        The risk the Sino-US trade war morphs into an international currency war has risen ·        The US$ Index is up since 2010 but its only back to the middle of it range since 2000 ·        The Chinese Yuan will weaken if the Trump administration pushes for higher tariffs ·        Escalation of domestic unrest in Hong Kong will see a flight to safety in the greenback

4 months

The Iron Law of Megaprojects vs. the Hiding Hand Principle

The next time you read about a "bridge to nowhere" or a giant infrastructure project that started and then stalled, you may wish to mutter to yourself to the "Iron Law of Megaprojects: Over budget, over time, over and over again." It's a coinage of Bent Flyvbjerg. For an overview of his arguments, you can check this Cato Policy Report (January 2017), which in turn is based on this article from the Project Management Journal (April/May 2014). In the Cato report, Flyvbjerg writes:

4 months

Tradeoffs of Free Higher Education: Finland, South Korea, England, United States

All goods and service have both a cost of production and a price paid by the consumer. If the government wishes to do so, it can raise revenues through taxing or borrowing to pay for the cost of production for certain goods and services, and thus allow the consumer to receive the good or service for "free." Many high-income countries around the world subsidize part or most of the cost of higher education in this way.