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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.
- 6
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!
- 5
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.
- 6
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).
- 6
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)
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Greece’s Problems Are Far From Over
Greece has exited bailout territory and the European Union is making a strong case of the success of the program.
- 7
China: Why We Should be Even More Worried After the Devaluation
I find it amusing to read some analysts stating that the Chinese government’s stealth yuan devaluation has offset the impact of tariffs.
- 4
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