More in Global Economy


5 years

How US Multinationals Shifting Income to Foreign Countries Reduces Measured GDP

US corporations work their accounting system so that sales and profits turn up in non-U.S. jurisdictions (for example, here' s a description of the Double Irish Dutch Sandwich technique). One implication is that corporations pay lower US and overall taxes; another is that because of this shifting, measured US GDP is smaller than it would otherwise be. 

5 years

Some Economics For Labor Day

For those who need the sweet and savory flavor of economics to accompany their end-of-summer Labor Day picnic (and really, don't we all need that?), here are links to some posts on labor market topics, mostly from earlier this year.

5 years

US Domination in the Global Stock Market

The stock market, like any other market, is a set of relative opportunities, not absolute ones. I have never seen a more pessimistic environment despite a stock market that continues to reach all-time highs. The S&P 500. Many economists are writing about the evidence of the bubble and the risks of a stock market crash.

5 years

A Shorter Work Week?

The biggest European union has managed to achieve a long-standing goal: German metal-workers can now work a 28-hour week, if  they wish. John Pencavel tells the story and draws out some implications for US labor markets in "The Future of Hours of Work?" a Policy Brief written for the Stanford Institute of Economic Policy Research (September 2018). Pencavel writes:

5 years

Governments With Monetary Sovereignty Cannot Issue All The Debt They Want

In this era of monetary fiction, one tends to read all types of undocumented and misguided views on monetary policy. However, if there is one that really is infuriating is the MMT science fiction.

5 years

Air Conditioning: Problem, Solution, Problem, Solution (?)

Problem: Many places of planet Earth are so hot, at least during significant portions of the year, that it has adverse effects on human health and productivity.

5 years

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.

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