finance

Worth Reading
August 27, 2009

Bernanke feels your pain: the chairman falls prey to identity theft.  Fed may not spend all $1.25 trillion set aside for mortgage securities. Society won't necessarily benefit from a post-finance job market. An argument against the banning of flash-trades? Another defense of the Taylor Rule by its creator. Has the placebo effect become more powerful?

Do Markets Increase Trust?
August 27, 2009

What's the relationship between markets and morality? The standard assumption is that markets have little impact on the moral character of people who operate within them. But it doesn't look like that's necessarily the case. Patrick Francois and Tanguy van Ypersele studied what happened to people's level of "trust in others" in states that deregulated their financial sectors in ways that increased competition. Trust can be considered a moral attribute, and given what's happened in the subprime market, you'd think that deregulation might lead to a drop in trust.

The Economic Storm Ahead
August 26, 2009

 With the near-simultaneous release this morning of CBO's updated Budget and Economic Outlook and OMB's Mid-Session Review, we have the most detailed economic analyses and forecasts we are likely to see for the rest of the year. If the consensus these documents represent is in the ballpark, the country and the Obama administration are in for a rough ride.

Can The Sahara Desert Power Europe?
August 25, 2009

What with all that hot sun beating down on the Sahara Desert day after day, it's no surprise that energy planners have suggested lining the sands of North Africa with mirrors and building vast concentrated solar plants to deliver lots and lots of carbon-free power to Europe.

Aliyah and Interest Rates
August 25, 2009

Aliyah is the at once mystical and practical "going up" to Zion. Stanley Fischer is one of the very many men and women who have made that journey and are, thus, olim. It was Bibi Netanyahu who, as minister of finance in Ariel Sharon's government, summoned him to the service of the Jewish state and turned around his whole life.

More on the Administration's Drug Deal
August 25, 2009

What kind of deal did the administration and Senate Finance Chairman Max Baucus make with the drug industry? And was it a good deal? I (try to) answer those questions in an article that appears in TNR's latest print edition--and is running on our (new!) home page today. As I note, albeit briefly because of the print edition's space constraints, three other articles advanced this story before I came along. One was a New York Times article, in which PhRMA chairman Billy Tauzin first spilled the beans about a key concession his group had secured.

Should Health Care Be on The Backburner?
August 14, 2009

While the attention of politicians, pundits, and the people is focused on the increasingly bitter debate over health insurance reform, economic developments will have a more profound effect on the well-being of the nation and the fortunes of the Obama administration. Only an economy that provides a steady stream of new jobs and raises personal income can yield enough revenue to restore public confidence and finance the government we need. As the economy struggles to stabilize, we find ourselves in a deep hole--even deeper than we knew.

Should Health Care Be On The Backburner?
August 13, 2009

While the attention of politicians, pundits, and the people is focused on the increasingly bitter debate over health insurance reform, economic developments will have a more profound effect on the well-being of the nation and the fortunes of the Obama administration. Only an economy that provides a steady stream of new jobs and raises personal income can yield enough revenue to restore public confidence and finance the government we need. As the economy struggles to stabilize, we find ourselves in a deep hole--even deeper than we knew.

Sachs Appeal
August 12, 2009

Should Tim Geithner's Wall Street consigliere make us queasy?

The Real Reason China Will Surpass Us
August 11, 2009

The usual concern about the U.S.-China balance of economic and political power is couched in terms of our relative international payments positions. We've run a large current account deficit in recent years (imports above exports); they still have--by some measures--the largest current account surplus (exports above imports) even seen in a major country. They accumulate foreign assets, i.e., claims on other countries, such as the U.S. We issue a great deal of debt that is bought by foreigners, including China. There are some legitimate concerns in this framing of the problem--no country can in

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