Monthly Archives: October 2015

Good Turner, Bad Turner

In Between Debt and the Devil, Adair Turner writes (p. 61), Textbook descriptions of banks usually assume that they lend money to businesses to finance new capital investment…But in most modern banking systems most credit does not finance new capital … Continue reading

Posted in books and book reviews, Financial Crisis of 2008, financial markets | Tagged | 10 Comments

Trying to Reconcile These

As you know, bakers who would not bake a wedding cake for a gay couple ran afoul of the legal system. Now, we find that Muslims who would not deliver alcohol were protected by the legal system. I am trying … Continue reading

Posted in Libertarian Thought | 42 Comments

Oops, Maybe You Should Not Annuitize

Felix Reichling and Kent Smetters write (gated–ungated version here), But the presence of stochastic mortality probabilities also introduces a correlated risk. After a negative shock to health that reduces a household’s life expectancy, the present value of the annuity stream … Continue reading

Posted in Economic education and methods, financial markets | 5 Comments

Trade Facilitation

Timothy Taylor writes, reforming the legal and regulatory processes around customs, and reducing delays, means that there is less reason to pay bribes to facilitate the process–and thus reduces corruption. Read the entire post. It takes some nuggets from one … Continue reading

Posted in Timothy Taylor is my Favorite Blogger, trade and immigration | Comments Off

Peter Berkowitz on Higher Education

He writes, As a consequence of the decline of liberal education in the United States, most American Jews will also graduate college without a basic knowledge of the virtues that underlie free societies; the institutional arrangements through which constitutional government … Continue reading

Posted in Libertarian Thought | 8 Comments

The Year I Beat Bill Gates

Shane Greenstein writes, Gates misinterpreted the value of the Internet’s commercial prospects. This error would take three interrelated forms in its conventional assessment: 1. Underestimating the Internet’s value to users; 2. Underestimating the myriad and clever ways entrepreneurs and established … Continue reading

Posted in books and book reviews, business economics, Internet governance and political theory | 4 Comments

How Bad is Financialization?

Noah Smith writes, For a long time, and especially since the financial crisis, many people have suspected that financialization is bad for an economy. There is something unsettling about watching the financial sector become a bigger and bigger part of … Continue reading

Posted in financial markets, Mark Thoma is Indispensable, Specialization and Trade Economics Intro | 9 Comments

Another AS-AD Anomaly

Timothy Taylor writes, [Alan] Krueger argues that the patterns of wage changes and unemployment are roughly what one should expect. He focuses only on short-term employment (that is, employment less than 27 weeks), on the grounds that the long-term unemployed … Continue reading

Posted in PSST and Macro, Scott Sumner is Coherent, Timothy Taylor is my Favorite Blogger | Comments Off

The WaPo on Government Workers

One one page, Joe Davidson writes, [Congressman Paul Ryan] viewed federal employees as a privileged class. On the facing page, Lisa Rein writes, A year after auditors documented tens of thousands of federal workers on paid leave for at least … Continue reading

Posted in labor market, Politics | 9 Comments

John Cochrane on Public Finance

And other things. But on public finance, he writes, The central goal of a growth-oriented tax system is to raise the revenue needed to fund necessary government spending at minimal distortion to the economy, and in particular minimizing the sorts … Continue reading

Posted in Politics | 3 Comments