More in Global Economy

3 months

Divergent – The Breakdown of Stock Market Correlations, Temporary or Permanent?

Emerging market stocks have stabilised, helped by the strength of US equities. Rising emerging market bond yields are beginning to attract investor attention. US tariffs and domestic tax cuts support US economic growth. US$ strength is dampening US inflation, doing the work of the Federal Reserve.

3 months

What's Wrong with Monetary Policy

In a report called “A report card for unconventional monetary policy,” Deutsche Bank has analyzed the impact on the economy of “unconventional” monetary policies, quantitative easing and negative interest rates.

3 months

Jackson Hole and the Risk of Inaction

Jackson Hole is not going to rescue the bad decisions of investors and politicians from other countries because everyone in the Federal Reserve knows they have something more important to do.

3 months

The Myth Behind the Origins of Summer Vacation

Why do students have summer vacation? One common answer is that it's a holdover from when America was more rural and needed children to help out on the farm, but even just a small amount of introspection suggests that answer is wrong. Even if you know very little about the practical side of farming, think for just a moment about what are probably the most time-sensitive and busiest periods for a farmer: spring planting and fall harvest. Not summer!

3 months

US Multinationals Producing Elsewhere: In the Trade War Crossfire

Most of the fuss about international trade focuses on goods and services that cross international borders. But a number of major US multinational companies--GM, Ford, Starbucks, Nike, and others--have  both production facilities and large sales in China. For example, GM sells more cars in China than in the United States. Overall, US exports of goods and services to China in 2016 were $170 billion; but total revenues of US multinationals producing and selling in China that year was twice as high at  $345 billion. 

3 months

Identity Portability When a Firm Has Your Past Data

If I want to try a different pizza joint, switching is easy. If I want to use a different social media platform, switching can be much harder. That's one reason why competition works better when buying pizza. How about if we required that social media companies make it straightforward to port our data and our digital identity to other providers? Joshua Gans discusses this idea in "Enhancing Competition with Data and Identity Portability" (Hamilton Project at the Brookings Institution, Policy Proposal 2018-10, June 2018).

3 months

A Bee Industry Update: Colony Collapse Disorder and Almond Pollination

The beekeeping industry matters more to economists than those who are not buzzing around the fields of economics may suspect. In the 1950s and 1960s, it was common for economists to use bees as a theoretical example of a situation where markets would not work well. The underlying argument was that it would be hard for beekeepers and growers to agree on how to price pollination services. This argument bit the dust, hard, when a practically minded economist pointed out in the 1970s that in fact, such agreements between beekeepers and growers had been  commonplace for decades. I offered a quick overview of this this intellectual history in "Do Markets Work for Bees?" (July 10, 2014)