Thursday, May 28, 2020

Free exchange - The legacy of Alberto Alesina | Finance & economics | The Economist

Mr Alesina was primarily an economist of politics and culture. Back in the 1980s, when he was completing his P h D at Harvard, wonks sneered at those investigating such supposedly soft questions. But Mr Alesina showed that explaining economic outcomes—why some countries are rich and others poor, or why immigrants succeed in some places but not others—meant looking beyond prices and GDP to subjects such as history and sociology.

At first glance, these questions might seem a million miles from tax rates and debt ratios. Not so for Mr Alesina. "The same historical, sociological, cultural variables which may have led to the choice of certain institutions may also be correlated with fiscal policies," he said. He asked why America spent relatively little on welfare, but Europe spent lots. His answer was that it was a matter of culture.

Publisher: The Economist
Twitter: @TheEconomist
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Quite a lot has been going on:

Don’t Expect A Quick Recovery. Our Survey Of Economists Says It Will Likely Take Years.

All across the country, the gears of the economy are grinding slowly and creakily into motion. Retail stores are newly open for in-person shopping in California. It's possible to get a much-needed haircut in Alabama. And in Alaska, bartenders are even slinging drinks again — albeit with strict capacity and spacing limits.

The reopening of the economy might seem like a promising sign. After all, as shuttered stores and restaurants reopen, workers can return to their jobs or look for new positions, and industries that have seen slowdowns can resume operations. Some politicians — including President Trump — have promised a fast recovery .

Publisher: FiveThirtyEight
Date: 2020-05-26T20:21:17 00:00
Author: https fivethirtyeight com contributors amelia thomson deveaux
Twitter: @FiveThirtyEight
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Lack of international cooperation will hinder economic recovery | Howard Davies | Business | The

T he years after the 2007-09 global financial crisis were characterised by an orgy of rule-making by financial regulators around the world to address the weaknesses exposed by the upheavals. Importantly, a renamed and reinforced Financial Stability Board (FSB), reporting to a series of G20 summits, oversaw the process of reregulation.

Are the changes made so far broadly consistent from country to country, or is the international consensus forged by the FSB starting to unravel?

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Publisher: the Guardian
Date: 2020-05-28T06:00:23.000Z
Author: Howard Davies
Twitter: @guardian
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COVID-19 reveals how economists sometimes forget economics | TheHill

Studies like these appear to reflect a consensus among economists that the shutdown measures are worth it. But is that the end of the story? Their conclusion may well prove correct, but that doesn't mean the analysis is without flaw.

One problem with COVID-19 cost-benefit analyses produced to-date is they aren't fully accounting for how benefits and costs are likely to evolve over time. Consider a simple case: Would anyone argue that spending $100 at a restaurant and investing $100 in a retirement account are the same thing? Of course not. Consumption, while important because it satisfies peoples' immediate needs and desires, is a static, over-and-done event.

Publisher: TheHill
Date: 2020-05-26T15:00:09-04:00
Author: James Broughel opinion contributor
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And here's another article:

Next week's economics: 1-5 June
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Date: 2020-05-28T13:54:35 01:00
Author: Chris Dillow
Twitter: @IChronicle
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How the coronavirus crisis has hit the UK's economic outlook | Business | The Guardian
Publisher: the Guardian
Date: 2020-05-27T18:34:55.000Z
Author: Richard Partington
Twitter: @guardian
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Mountain claimers - A border dispute between India and China is getting more serious | Asia | The

According to Indian press accounts, Chinese troops have crossed the undefined border with India at several points, some reportedly penetrating 3-4km over punishing terrain. They are said to have destroyed Indian posts and bridges, and dug in with tents and trenches. Incursions have been reported at the confluence of the Galwan and Shyok rivers, the Hot Springs area and Pangong lake, the site of the original scrap (see map).

There is considerable uncertainty over the precise size and location of the forces involved, but Ajai Shukla, a former army colonel now with the Business Standard , an Indian newspaper, estimates that three Chinese brigades—each comprising thousands rather than hundreds of soldiers—might be involved, one several hundred kilometres to the south near the Indian state of Uttarakhand.

Publisher: The Economist
Twitter: @TheEconomist
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As The Economic Cycles Turn

US President Donald Trump leaves after an event on protecting seniors with diabetes in the Rose ... [+] Garden of the White House in Washington, DC, on May 26, 2020. - Trump announced new choices of Medicare Part D plans that will offer insulin at affordable and predictable prices of no more than $35 for a months supply. (Photo by Brendan Smialowski / AFP) (Photo by BRENDAN SMIALOWSKI/AFP via Getty Images)

I had a chance to catch up with my friend Neil Howe at my recent Strategic Investment Conference about the "Fourth Turning"—a recurring generational cycles theory that Neil helped to write the book on, quite literally.

Publisher: Forbes
Date: 2020-05-28
Author: John Mauldin
Twitter: @forbes
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