An interview with Jere Behrman: Professor of Economics at the University of Pennsylvania
I want to begin with your work in certain states in sub-Saharan Africa, where there is a preference towards having boys rather than girls. That is especially the case during famine – how can this be best resolved? The first thing is to distinguish between preferences and incentives – that is, if markets reward men more than women, parents will be incentivised into having boys. … Continue reading An interview with Jere Behrman: Professor of Economics at the University of Pennsylvania
The New Age of Work
Work is central to humanity. It governs our purpose and use of time; without it we would lose all sense of hierarchy and social solidarity. Not only is it vital to individuals and their livelihoods, it is also a central part of culture and societies internationally, with work being a staple of social order and status. Nations and communities who productively employ people are usually … Continue reading The New Age of Work
The Data Revolution
The rapid increase in global data production that is currently taking the world by storm is by no means a recent phenomenon. Indeed, ever since the very earliest stages of mankind’s existence, data in some form has been the metric used to evaluate almost everything, from decisions regarding the implementation of new technologies to deciding on the most suitable design for a product. It is … Continue reading The Data Revolution
Productivity Problems
Historically, economists have used increasing productivity as a proxy for improving living standards. The argument stands that if productivity is improving, firms have more room to increase wages. This in turn increases living standards (assuming no increase in inflation). However, since the financial crisis, the productivity growth of G7 nations, especially in the UK, has not increased in line with its historic trend. Has this … Continue reading Productivity Problems
Psychological Trading
The human mind is not built for financial business. Our archicortex (the oldest region of the brain’s cerebral cortex) can’t distinguish between life-threatening and non life-threatening situations. This has effects throughout the financial sector, especially trading. Unfortunately, the perfect rationality of the “homo economicus” is a lie: humans have always been known to be affected by emotions and biases. Richard Thaler, a Nobel laureate in … Continue reading Psychological Trading
European Super League: A money making scheme?
Over the past century, football has cemented its place as the most popular sport in the world. It now commands the interest, loyalty and engagement of more people than ever before and continues to grow bigger. ‘In the three most populous nations on earth – China, India and the United States – where football existed on the periphery of society, it has now arrived for … Continue reading European Super League: A money making scheme?
The Economic Implications of Global Free Movement
The border has become the focal point of the 21st Century debate on globalisation. To some, it is an arbitrary boundary hampering efficiency; to others, the mainstay of security and prosperity. What happens when these barriers fall? The economy lies at the heart of the migration conundrum and it is largely economic factors that motivate movement. Higher wages, better working conditions, greater availability of jobs, … Continue reading The Economic Implications of Global Free Movement
UBI: A leap into the dark?
Universal Basic Income (UBI) is a government initiative consisting of an unconditional periodic payment to every adult citizen. UBI has been described as one of the most ambitious social projects in history that could reap countless benefits if implemented correctly. On a microeconomic scale it would lift every citizen above the poverty line, whilst on a macro scale it would act as a catalyst to … Continue reading UBI: A leap into the dark?
Inflation Targeting: A flawed idea?
Since New Zealand’s adoption of an inflation targeting system to guide monetary policy in 1990, 25 other countries have followed suit. However, in the wake of the 2008 financial crisis, big-hitting economists such as Gregory Mankiw, Paul Krugman and Scott Sumner have proposed alternative methods, such as nominal GDP targeting and price-level targeting. The question the debate raises is two-fold: has inflation targeting brought prosperity, … Continue reading Inflation Targeting: A flawed idea?
Covid-19 and the Economy
Recently, Covid-19 has been at the forefront of global news. Having originated in the latter months of 2019 in China, it has now been declared a global pandemic. The virus is carried best by young people but is most lethal for the elderly. The United Kingdom has now moved to the ‘delay’ phase with the objective now being to slowdown the virus. With total cases … Continue reading Covid-19 and the Economy
