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October 01, 2014
Fernando Alvarez
Professor of Economics, University of Chicago
Hervé Le Bihan
Head of Macro-Analysis and Forecasting Division, Banque de France
Francesco Lippi
Professor of Economics, University of Sassari and CEPR Research Fellow.
Most macroeconomic models embed some form of sticky prices, i.e. inertia in price-setting decisions. The main motivation for sticky prices is the empirical observation that individual good prices tend to remain fixed for long periods of time, typically a few months for CPI items. The sticky prices assumption is central in understanding how monetary policy actions propagate the ...
Judith Niehues
Senior Economist, Cologne Institute for Economic Research; Research Affiliate, IZA
The well-known and frequently tested median voter theorem predicts a positive relationship between income inequality and state redistribution; if the decisive median voterÂ’s income is below the social average, he votes for more welfare redistribution because he expects to benefit from progressively financed welfare programmes. However, this theory does not perform very well whe...
FactCheck.org
A Project of the Annenberg Public Policy Center of the University of Pennsylvania.
In a new TV ad, Rep. Tom Cotton tries to rewrite history with the claim that President Obama “hijacked the farm bill, turned it into a food stamp bill.” Food stamp funding has been part of farm bills going back to 1973. Cotton’s ad seeks to explain the congressman’s vote earlier this year against the farm bill — a vote that bucked the rest of the Arkansas House delegation, a...
Karthik Krishnan
Assistant Professor of Finance and Thomas Moore Faculty Fellow at the D'Amore-McKim School of Business Administration, Northeastern University
Debarshi Nandy
Associate Professor of Finance in the International Business School, Brandeis University
Manju Puri
J.B. Fuqua Professor of Finance at the Fuqua School of Business, Duke University
The Dodd-Frank act of 2011 included a clause that completely deregulated expansion by banks across state borders through opening up new branches. Some called this feature a giveaway to big banks and detrimental for community banks. Others saw it as a boon for community banks, since they will be able to expand into newer markets at a lower cost. This debate, however, also feeds ...
Seiichi Inagaki
Visiting Professor at the Graduate School of Innovation Management, Tokyo University of Technology; Associate Research Scholar at the Institute of Economic Research, Hitotsubashi University
Takashi Oshio
Professor of Economics, Hitotsubashi University
Does starting working life with non-regular jobs decrease the odds of success in later life? There has been debate about the long-term consequences of flexible market entry across European countries (Scherer 2004, 2005). On the one hand, the entrapment scenario argues that once an individual begins his or her working life with a non-regular job – such as one with fixed-term con...
Giuseppe Berlingieri
Research Associate at the Centre for Economic Performance, LSE; Young Professional in the Department of Science, Technology and Innovation, OECD
How much of the structural transformation of modern economies from manufacturing to services is a shift in organisational boundaries, in which work that was previously done within manufacturing firms is now outsourced to specialised service providers? This column looks at changes in the US economy over the past 60 years, and shows that the evolution of the input-output structur...
Arik Levinson
Associate Professor in Economics Department, Georgetown University
Pollution emitted by manufacturers has been falling for decades in Europe and the US, while the real value of manufacturing output has been growing (Brunel 2014). What accounts for this clean-up? A worrisome explanation is that rich countries have been offshoring the pollution-intensive, or ‘dirty’, parts of their manufacturing sectors, producing the clean goods and doing final...
Marius Zoican
PhD candidate in Financial economics, Tinbergen Institute and VU University Amsterdam
Few activities embraced the computer age so actively as trading. Loud and hectic pits have been progressively replaced by silent computer server rooms. Transactions are no less dynamic for it, however. A London-based trader can buy stocks in Frankfurt within just 2.21 milliseconds.1 Light needs 2.12 milliseconds to travel the same distance. Welcome to the age of algo...
Peter Cappelli
George W. Taylor Professor of Management at the Wharton School, University of Pennsylvania
Federal and State governments in the US are giving serious consideration to the idea that the there are important problems with the overall quality of labour in the US. The most extreme but nevertheless most common view of the situation is that there are substantial numbers of high-paying jobs that cannot be filled because school leavers do not have the skills to pe...
FactCheck.org
A Project of the Annenberg Public Policy Center of the University of Pennsylvania.
An ad from Rep. Bill Cassidy attacks his Democratic opponent, Sen. Mary Landrieu, for not “fully funding veterans benefits,” even though he voted for the House version of a bipartisan budget bill that included those very same cuts. Cassidy even defended those reductions in a national radio interview. Moreover, less than two months later, both Cassidy and Landrieu vo...
Avner Offer
Chichele Professor of Economic History and Emeritus Fellow at All Souls College, University of Oxford
World War I was a mistake. Its consequences were not part of anybody’s expectations (excepting Stead and Bloch 1899) – certainly not of those who set it off, although there was an undertone of fatalism in their decisions (Offer 1995). If one side had possessed an unassailable superiority, then there would have been no call for war. The war’s duration indicates that the sides we...
Andy Atkeson
Stanley M Zimmerman Professor of Finance and Economics and Director of the Business Economics Program, UCLA
Andrea Eisfeldt
Professor of Finance at the Anderson School of Management, UCLA
Pierre-Olivier Weill
Associate Professor of Economics, UCLA; Research Affiliate, CEPR
Several observations regarding entry and trading patterns in over-the-counter (OTC) markets for interest rate and credit derivatives have recently received considerable attention from policymakers and the public alike. OTC derivatives markets are large. For example, the total gross notional of derivatives contracts on US bank balance sheets is over 17 times the size...
Jaime De Melo
Senior Fellow, FERDI; Professor, University of Geneva; CEPR Research Fellow
At the concluding days of the Doha negotiations in November 2001, WTO members signed a waiver extending the Cotonou Partnership Agreement to allow the Cotonou trade regime to be extended provided that it became WTO-compatible, that is through reciprocal Free Trade Areas.  Negotiations were to be concluded by December 2007 else the non-Least Developed Countries (non-LDCs) among ...
Alan Moreira
Assistant Professor of Finance in the School of Management, Yale University
Alexi Savov
Assistant Professor of Finance at the Stern School of Business, New York University
Shadow banking, what is it good for? At the epicentre of the global financial crisis, shadow banking has become the focus of intense regulatory scrutiny. All reform proposals implicitly take a stance on its economic value. According to the prevailing regulatory arbitrage and neglected risks views, it doesn’t have any – shadow banking is about evading capital requirements, ex...
James Boughton
Senior Fellow, CIGI
No one would argue seriously any longer that the international financial system is working just fine. When the politicians and central bankers who govern the International Monetary Fund and the World Bank gather in Washington this October, much of the talk will be about the refusal of the US Congress to pass legislation that would reform the IMF. Without that reform, almost eve...
FactCheck.org
A Project of the Annenberg Public Policy Center of the University of Pennsylvania.
President Obama enjoys his sports analogies, so let’s just say that he fumbled when he was asked whether he made a “misjudgment” eight months ago in dismissing the Islamic State in Iraq and Syria as the equivalent of “a jayvee team.” Obama said he “wasn’t specifically referring” to ISIS when he made the junior varsity reference during an interview with The New Yorker
Ramon Xifré
Associate Professor of Economics at ESCI – Universitat Pompeu Fabra; Policy Research Fellow in the Public-Private Sector Research Center, IESE Business School
The most acute phase of the Global Crisis appears to be over in the Eurozone. Prospects for growth are still moderate but no recession is foreseen in the short-run and sovereign debt markets seem to be getting out of the turbulences. The prevailing view is that the countries that have been under the Economic Adjustment Programmes (EAP) have drastically improved their conditions...
Wyplosz Charles
Professor of International Economics at the Graduate Institute, Geneva; Director of the International Centre for Money and Banking Studies.
The 4 September announcement by Chairman Mario Draghi has been greeted with enthusiasm by the markets and the media. It has been long awaited, and many believe that the ECB has finally delivered. This is not sure. The ECB intends to buy large amounts of securities backed by bank lending to households (mortgages) and to firms. Traditional quantitative easing (QE) is ...
Alex Edmans
Professor of Finance at London Business School (on leave from The Wharton School, University of Pennsylvania); Faculty Research Fellow, NBER; and CEPR Research Fellow
Executive pay is a high-profile topic on which almost everyone has an opinion.  Many shareholders, workers, and politicians believe that the system is broken and requires a substantial overhaul.  Despite being well-intentioned, their suggested reforms may not target the elements of pay that are most critical for shareholder value and for society. Level 1 thinking: The leve...
Jeffrey Frankel
Professor of Economics, Harvard Kennedy School
In few policy areas does good economics conflict so dramatically with good politics as in the practice of subsidies to food and energy. Economics textbooks explain that these subsidies are lose-lose policies. In the political world, that can sound like an ivory tower abstraction. But the issue of unaffordable subsidies happens to be front and centre politically this summer, in ...
Ashoka Mody
Visiting Professor in International Economic Policy at the Woodrow Wilson School, Princeton University
Earlier this year, the German Constitutional Court issued a strongly-worded opinion stating that the European Central BankÂ’s Outright Monetary Transactions (OMT) programme is inconsistent with the Treaty on the Functioning of the European Union (TFEU). The European Court of Justice (the ECJ) is to review this opinion. The reaction to the German CourtÂ’s forceful stand has tak...
Matthias Helble
Research Fellow in the Research Department, Asian Development Bank Institute
Boon-Loong Ngiang
Business Intelligence Analyst, Criteo
Over the past decades, East Asia has been the most successful region in the world in building up cross-border supply chains and has subsequently become described as “Factory Asia” (Baldwin 2008). In a form of “triangle trade”, advanced countries in East Asia exported sophisticated parts and components to less developed countries in the region, where these are assembled into fin...
FactCheck.org
A Project of the Annenberg Public Policy Center of the University of Pennsylvania.
A Crossroads GPS ad exaggerates a few personal anecdotes to claim that “many Coloradans pay roughly 100 percent more for health insurance since Obamacare.” The ad, attacking Democratic Sen. Mark Udall, also tries to pin a shortage of doctors in rural areas on the health care law. But there’s no evidence the law caused a change in the ratio of residents to primary care physic...
Mateusz Szczurek
Minister of Finance, Republic of Poland
Europe is at risk We are meeting here at the time when Europe is facing a great threat. It is not the danger of sovereign debt crisis or of the collapse of the euro area. We have managed to decisively avert those risks through a coordinated effort at the European level. Unfortunately, neither is it the threat of the so-called “lost decade” because the “lost decade” is...
Yuriy Gorodnichenko
Assistant Professor in the Dept. of Economics, University of California, Berkeley
GĂ©rard Roland
E. Morris Cox Professor of Economics and Professor of Political Science, University of California, Berkeley; and CEPR Research Fellow
There is plenty of evidence that Russian troops are fighting the Ukrainian army on Ukrainian soil. This Russian invasion is a further escalation of the war between Ukraine and Russian-sponsored separatists and terrorists in the east of Ukraine. As soon as the Ukrainian forces were about to take over cities in eastern Ukraine, Mr Putin raised the stakes and sent Russian military...
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Royals rally to stun A's and advanceThe Kansas City Royals celebrate after they defeated the Oakland Athletics 9 to 8 in the 12th inning of their American League Wild Card game at Kauffman Stadium on September 30, 2014 in Kansas City, Missouri
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Bad boy Bracewell wins Black Caps reprieveNew Zealand batsman Doug Bracewell plays a shot during the third day of the second cricket Test match against Bangladesh in Dhaka on October 23, 2013
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Morneau added to Major League Baseball tour teamJustin Morneau (R) of the Colorado Rockies is congratulated by teammate Rafael Ynoa after hitting a two-run home run in the third inning against the Los Angeles Dodgers at Dodger Stadium on September 26, 2014
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Pellegrini rues carelessness as Roma hold CityManchester City's Vincent Kompany (C) clears the ball during the Champions League Group E match against Roma in Manchester, on September 30, 2014
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Responsibility for Barca defeat is mine, says EnriqueParis Saint-Germain goalkeeper Salvatore Sirigu makes a save during the UEFA Champions League match against Barcelona at the Parc des Princes stadium in Paris on September 30, 2014
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