May 2, 2013
After the financial crisis, it became a favorite hobby of pundits to try to figure out what the next Black Swan event would be. Since Black Swans are impossible to predict, this is a total waste of time. However, pundits still continue their guessing game.
Apr 18, 2013
Does too much debt cause slower growth and inflation? Carmen Reinhart and Kenneth Rogoff attempted to answer this question in their “Growth in a Time of Debt” paper. After analyzing data on 44 countries, they found that the higher a debt-to-GDP ratio is above 90 percent, the lower GDP growth is.
Apr 11, 2013
Bitcoin is officially the hottest new currency. The electronic currency has quadrupled in value in the past four weeks. But the day-to-day volatility is not the story.
Apr 5, 2013
In an earlier post, I stated that President Barack Obama’s desire to raise taxes is for reasons of fairness not for economic reasons. A colleague agreed that Obama’s language seemed punitive, but thought that the reasoning was good. He noted that raising taxes for the rich reduces income inequality.
Mar 28, 2013
President Barack Obama recently announced an initiative to raise the minimum wage from $7.25 to $9.00 an hour. Not surprisingly, economists from both ends of the political spectrum have taken opposite sides on the issue.
Mar 21, 2013
Cyprus has been in the news a lot lately over a botched bailout from the European Union, the International Monetary Fund and the European Central Bank. Many smart people have commented on the issue, so I want to focus on a different angle.
Mar 14, 2013
Japan’s new Prime Minister, Shinzo Abe, has received much attention from around the world for his aggressive economic policies. Abe is implementing some controversial actions. However, no action has been as critiqued as Abe’s attempt to devalue the Japanese yen.
Mar 7, 2013
The SEC has taken many other high-profile cases lately. While the actions are commendable, a somewhat disconcerting concern has arisen.