www.tipnews.info
June 29, 2016
Daniel Gros
Daniel Gros
Director of the Centre for European Policy Studies, Brussels
The business of central banks used to be profitable – they issue cash and can invest the proceeds in the assets they like.  The more cash they issued, the more they used to gain. But negative rates have upended this business model. Printing bank notes when interest rates go negative become a loss-making business. In textbooks, ‘seigniorage’ is defined as the profits a centra...
FactCheck.org
FactCheck.org
A Project of the Annenberg Public Policy Center of the University of Pennsylvania.
A TV ad from a Democratic political action committee could leave voters with the false impression that Donald Trump said he “loves” war “including with nukes.” The ad uses two clips back-to-back of Trump speaking at events that were actually several months apart. In the ad, Trump, the presumptive Republi...
Jon Danielsson
Jon Danielsson
Director of the Systemic Risk Centre at the London School of Economics
The UK vote yesterday to leave the European Union will have widespread consequences for financial markets, creating both opportunities and problems. Much depends on how policymakers and market participants react, and there will be much to learn about the resiliency of financial markets and their regulation. There is of course the potential for Brexit to increase financial st...
Dalia Marin
Dalia Marin
Chair in International Economics at the University of Munich
Currently there is a lively debate in Germany about why the economy has become more unequal over the last 20 years. But there is little discussion on the drivers of inequality. Why is Germany less unequal in income than the US? There is a reason for it which has received little noticed. A major source of inequality in rich countries is the development of the top 1% of income...
David Autor
David Autor
Professor and Associate Head, MIT Department of Economics
Over the last three decades, women have surpassed men in educational attainment throughout the developed world. In 2011, more women than men completed college in 29 of the 34 OECD countries, with just five countries – Chile, Japan, Luxembourg, Mexico, and Turkey – having higher rates of male college completion. In the US, the current female high school graduation rate exceeds t...
Joshua Aizenman
Joshua Aizenman
Professor of Economics, University of California Santa Cruz and Research Associate, the NBER
The Asian emerging market economies (EMEs) are facing their greatest challenge in international macroeconomic management since the Asian financial crisis of 1997–1998. In the aftermath of the EME crises in the late 1990s and the early 2000s, many of the EMEs, whether they experienced the crisis or not, started rapidly increasing their international reserve holdings. Most notabl...
Ariel Pakes
Ariel Pakes
Thomas Professor of Economics, Harvard University
Recently, empirical tools have been developed that enable a deeper understanding of market responses to complex environmental changes, like mergers in which input prices are a result of a bargaining process (e.g. the proposed merger between Aetna and Humana in the US health insurance markets), or the market restructuring that results from deregulation or tariff reform. The empi...
FactCheck.org
FactCheck.org
A Project of the Annenberg Public Policy Center of the University of Pennsylvania.
Donald Trump made a baseless claim that assimilation among Muslim immigrants in the U.S. is “pretty close” to “nonexistent.” Trump offered no support for his claim, but the Pew Research Center, which conducted detailed surveys in 2011, concluded that “Muslim Americans appear to be highly assimilated into American society.” Scholars on Islam that we spoke to also dismissed Tr...
Prachi Mishra
Prachi Mishra
Adviser and Head of the Strategic Research Unit, Reserve Bank of India
In order to avoid the destructive beggar-thy-neighbour strategies that emerged during the Great Depression, the post-war Bretton Woods regime attempted to prevent countries from depreciating their currencies to gain an unfair and sustained competitive advantage. It required fixed, but occasionally adjustable, exchange rates and restricted cross-border capital flows. Elaborate r...
Giorgio Brunello
Giorgio Brunello
Professor of Economics at the University of Padova
At least since Mincer (1974), many economists have estimated the returns to education. The vast and ever growing literature in this area has been reviewed by Card (2001) and Heckman et al. (2006). Some people benefit more from schooling than others. For instance, Cunha and Heckman (2007) argue that the returns to college in the US are lower for individuals who grew up in dis...
Francisco Buera
Francisco Buera
Senior economist and research advisor, Federal Reserve Bank of Chicago
The merit of free trade is a widely debated subject. Openness is often associated with economic growth. The experiences of South Korea in the post-war period and the recent performance of China are prominent examples. Recent empirical work using natural experiments that induce larger changes in trade costs for some pairs of countries than others – such as the decline in the cos...
FactCheck.org
FactCheck.org
A Project of the Annenberg Public Policy Center of the University of Pennsylvania.
Political attack ads all too often try to spin an opponent’s jaywalking tickets into felonies. As an example, consider Virginia Rep. Randy Forbes’ claim that his GOP primary opponent, Scott Taylor, “violated federal election law 19 times.” The claim results from overreaching by opposition researchers. The fact is, the Federal Election Commission has cited Taylor’s 2010 campa...
Jrme Hricourt
Jérôme Héricourt
Professor of Economics, University of Western Brittany
From the breakdown of the Bretton-Woods Agreements to the recent charges of “currency war”1 against countries using unconventional monetary policies based on quantitative easing, the instability and volatility of exchange rates have been recurring issues, both in policy and business circles. Governments tried a variety of strategies to handle the problem, from multil...
Efraim Benmelech
Efraim Benmelech
Harold L. Stuart Professor of Finance and Director, Guthrie Center for Real Estate Research, Kellogg School of Management
Nearly a decade since it took place, the US federal government’s rescue of the financial system in 2008-2009 remains highly controversial. At the time, the Troubled Asset Relief Program (TARP), which injected equity into commercial banks and provided for the bailout of the General Motors Acceptance Corporation (GMAC) — the lending arm of General Motors— and the US automobile se...
Jon Danielsson
Jon Danielsson
Director of the Systemic Risk Centre at the London School of Economics
Various public and private authorities have come to see cyber risk — risk emanating from computer systems and computer networks — as a significant channel for systemic risk. Recent examples include the Bank of Canada (2014), the BIS (2014), the Bank of England (2015) and the SEC (Ackerman 2016). Cyber risk is certainly a real and growing threat to the well-being of financial...
Masayuki Morikawa
Masayuki Morikawa
Vice President, Research Institute of Economy, Trade and Industry (RIETI)
Since the second half of the 1990s, productivity growth has accelerated in the US due to the Information Technology (IT) Revolution. However, the productivity effects of traditional types of IT were exhausted by mid-2000 (e.g. Fernald 2015). Today, the impacts of artificial intelligence (AI) and robotics?referred to as the Fourth Industrial Revolution?on the future economy and ...
Stefano Micossi
Stefano Micossi
Director General of ASSONIME
The financial crisis of 2008-09 and the ensuing sovereign debt and banking crises within the Eurozone led national governments to underpin the balance sheets of several banks through extensive bailouts, at the expense of taxpayers. Public outrage over the enormous losses placed on taxpayers convinced policymakers and legislators across the Atlantic – under the auspices of the G...
FactCheck.org
FactCheck.org
A Project of the Annenberg Public Policy Center of the University of Pennsylvania.
 In a recent speech, President Obama criticized Republicans for making claims about the economy and health care that are “not supported by the facts.” But Obama resorted to some spin of his own. Obama said “America’s economy is not just better than it was eight years ago — it is the strongest, most durable e...
Chad P.Bown
Chad P.Bown
Lead Economist, World Bank; and CEPR Research Fellow
How important are policy barriers to trade? Historically, this question has been difficult to answer because, as noted by Anderson and van Wincoop (2004), "[t]he grossly incomplete and inaccurate information on policy barriers available to researchers [was] a scandal and a puzzle." The recent literature assessing the effect of trade policy on...
Thomas Sampson
Thomas Sampson
Assistant Professor in the Department of Economics, London School of Economics; Research Affiliate, CEPR
The possibility of the UK leaving the EU has generated an unusual degree of consensus among economists. Acrimony and rancour surrounded debates around austerity and joining the euro, but analysis from the Bank of England, to the OECD, to academia has all shown that Brexit would make us economically worse off. The disagreement is mainly over the degree of impoverishment (e.g. Dh...
Christian Thimann
Christian Thimann
AXA Group, Paris, and Paris School of Economics
Three years have passed since the Financial Stability Board (FSB) designated the first set of nine insurance companies as ‘systemically important’ (G-SIIs): five companies from the EU, three companies from the US and one company from China.1 Since then, supervisory colleges among the local insurance oversight authorities most relevant for these companies – so-called ...
Lars Jonung
Lars Jonung
Senior Professor, Lund University; Chairman, Swedish Fiscal Policy Council
The volume of credit to households has grown rapidly since the mid-1990s in Sweden—twice the rate of nominal economic growth. The long-lasting credit boom has been accompanied by rising house prices and mounting household debt ratios. The central bank, the Riksbank, presently pursues a very expansionary policy with negative interest rates and massive purchases of government bon...
FactCheck.org
FactCheck.org
A Project of the Annenberg Public Policy Center of the University of Pennsylvania.
Former Secretary of State Hillary Clinton has said that her decision to use a private email account and server for government business while secretary of state was “allowed” by the State Department. She has said “my predecessors did the same thing,” and insisted she “fully complied with every rule” in preserving her work emails. We have taken issue with those claims, and now...
Brian Varian
Brian Varian
Economic History Department, London School of Economics
Britain was the first country to industrialise, and it was also the first country to contend with foreign industrialisation – in the US and Continental Europe. In the 21st century, as the locus of manufacturing activity expands, policymakers in both developed and newly industrialised countries can look to the late 19th century to understand what determines the pattern of compar...
Samuel Bowles
Samuel Bowles
Research Professor and Director of the Behavioral Sciences Program, Santa Fe Institute
The main message of Richard Titmuss’ influential The Gift Relationship: FromHuman Blood to Social Policy (Titmuss 1971) was this:  the use of economic incentives to advance social objectives may be counterproductive. The reason, he suggested, is that fines, bonuses, or other incentives induce people to adop...
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