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Timothy Taylor2 The Reality Behind GDP Growth, Inflation, and Fiscal Policy
Daniel Lacalle3 Governments Could Halt Inflation If They Chose to, but They Won't
Daniel Lacalle4 US Airlines Mandated to Offer Automatic Cash Refunds for Flight Disruptions
Rayson Choo5 How Fast Are Americans Drawing Down Their Pandemic Savings?
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More in Global Economy
Early Childhood Education Fails Another Randomized Trial
Public programs for pre-K education have a worthy goal: reducing the gaps in educational achievement that manifest themselves in early grades. I find myself rooting for such programs to succeed. But there are now two major randomized control trial studies looking at the the results of publicly provided pre-K programs, and neither one finds lasting success. Mark W. Lipsey, Dale C. Farran, and Kelley Durkin report the results of the most recent study in "Effects of the Tennessee Prekindergarten Program on children’s achievement and behavior through third grade" (Early Childhood Research Quarterly, 2018, online version April 21, 2018).
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Copper And Gold Say A Lot About Chinese And Global Growth
Weakness in Copper persists, and it shows the risks to optimistic global growth and inflation expectations. But something else is happening in gold and copper apart from global slowdown and US dollar strength.
- 5
Conflict Minerals and Unexpected Tradeoffs
The cause seemed worthy, and the policy mild. Militia groups in the Democratic Republic of the Congo (DRC) were taxing and extorting revenue from those who mined like tin, tungsten, and tantalum. Thus, Section 1502 of the Dodd-Frank Act of 2010 required companies to disclose the source of their purchases of such minerals. The hope was to reduce funding for the militias, and thus to benefit people in the area. Human rights advocacy groups supported the idea. The Good Intentions Paving Company was up and running.
- 3
The Eurozone’s Coming Debt Crisis
The European Central bank has signalled the end of its asset purchase program and a possible rate hike before 2019. After more than 2 trillion euro of purchases and zero interest rate policy, it is overdue.
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On Preferring A to B, While Also Preferring B to A
"In the last quarter-century, one of the most intriguing findings in behavioral science goes under the unlovely name of preference reversals between joint and separate evaluations of options. The basic idea is that when people evaluate options A and B separately, they prefer A to B, but when they evaluate the two jointly, they prefer B to A." Thus, Cass R. Sunstein begins his interesting and readable paper "On preferring A to B, while also preferring B to A" (Rationality and Society 2018, first published July 11, 2018, subscription required).
- 5
Europe Needs to Harmonize to Ireland
Whenever we talk about tax cuts and growth-oriented tax programs in Europe, many tell us that “it is not possible” and that the European Union does not allow it.
- 7
Risk Off? Not Really
The recent strength in the US dollar and stock market weakness has generated many headlines about “risk-off” mentality. However, the reality is quite different. We are far from capitulation.
- 6
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