Thursday, January 28, 2021

How Economics Lost Itself in Data - WSJ

Allen was among the last of a generation of economists who were masters of their craft. He wrote, along with his friend and colleague Armen Alchian, an excellent economics textbook that conveys the power and potential of the economic way of thinking: Despite the complexities of markets, economists can get at the heart of how they work by focusing on prices. This insight is so important, it gives economists' core tool kit a name: price theory.

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Publisher: WSJ
Date: 2021-01-27T19:30:00.000Z
Author: Alexander William Salter
Twitter: @WSJ
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Restaurants - Gulp! The secret economics of food delivery | 1843 magazine | The Economist

He opened Olives and Meze in 2014. Like Elmas, whose friends call him Eddie, the restaurant straddles two worlds, refashioning the Turkish grill for the bourgeoisie of Clapham, an upmarket suburb in south London. It was a success. With its sleek, steel-grey bar and open terrace, it quickly became the kind of place where you could take a date. Elmas didn't think of it as somewhere that did takeaway – he assumed that was just for pizza, curry and chow mein.

Six years later, he was making a small but steady profit, enough to invest in a second restaurant, this time on a knobbly side street in Soho in central London. There would be a constant flow of passing tourists and shoppers and it was close enough to Theatreland to capture the pre- and post-show trade; he hoped that office workers, weary of yet another sandwich from Pret, would come for healthy meze and salads during the day. It was ready to open in March 2020. Then the pandemic struck.

Publisher: The Economist
Twitter: @TheEconomist
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Saved Stimulus Checks Expected to Help Spur Economic Recovery - WSJ

Many U.S. consumers are starting 2021 flush with savings likely to help fuel the economic recovery this year.

The latest federal Covid-19 aid package sent $600 checks to many households that also received relief money last year, while more affluent households have built up pools of cash by curbing their spending during the pandemic.

Americans saved $1.4 trillion in the first three quarters of 2020, or about twice as much as in the same period of the prior year, according to analysis by Berenberg Economics. That amount is equivalent to nearly 10% of 2019 household spending, estimates Berenberg's chief economist, Holger Schmieding.

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Publisher: WSJ
Date: 2021-01-26T10:30:00.000Z
Author: Harriet Torry
Twitter: @WSJ
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Fed Leaves Interest Rates Near Zero as Economic Recovery Slows - The New York Times

Federal Reserve officials left interest rates near zero on Wednesday and pledged to continue making huge bond purchases as the central bank tries to help the economy weather the continuing pandemic, warning that a surge in the coronavirus has slowed progress toward a full rebound.

The Fed chair, Jerome H. Powell, said at a news conference on Wednesday that the virus resurgence was "weighing on economic activity and job creation," and that the economic outlook hinged on the pandemic and "remains highly uncertain."

Date: 2021-01-27T19:00:21.000Z
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One Berkeley faculty member, one alumnus join Biden economic team | Berkeley News

At least 10 UC Berkeley faculty and alumni — four with ties to Berkeley Economics — are taking high-level positions with the administration of President Joe Biden and Vice President Kamala Harris. (Photo by Brook Ward via Flickr)

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Danny Yagan, an associate professor in the Berkeley Department of Economics, has been named chief economist in the Office of Management and Budget (OMB), a center of influence in the White House. Olugbenga Ajilore, a 1996 Berkeley graduate, was named a senior adviser in the U.S. Department of Agriculture, where he will focus on rural development.

Publisher: Berkeley News
Date: 2021-01-26T18:02:20 00:00
Twitter: @ucberkeley
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Opinion: Biden's economic rescue plan is bold enough to actually work - MarketWatch

AUSTIN, Texas ( Project Syndicate )—In the space of less than three months, events have conspired to transform the American political scene.

First, the COVID-19 pandemic defeated Donald Trump—not because public sentiment in this deeply polarized country changed, but rather because the virus forced open the gates of ballot access. Owing to a vast upsurge of early voting and mail-in ballots, the 2020 election's turnout surpassed that of 2016 by 20 million votes, and featured a greater share of the electorate than any U.S. presidential election since 1900.

Publisher: MarketWatch
Date: 2021-01-27T10:33:00-05:00
Author: James K Galbraith
Twitter: @marketwatch
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Good economics is good politics, this Budget will be game changer: BJP - The Hindu

Ahead of presentation of the Union Budget in Parliament, the ruling BJP on Thursday said it will be a game changer and usher in a new era of economic growth in the country.

Citing a recent International Monetary Fund (IMF) report which projected India to grow at 11.5% in 2021, BJP spokesperson Gopal Krishna Agarwal said the country's economy has witnessed a 'V' shaped recovery after being hit by the pandemic.

"Good economics is good politics that has been the motto of the Narendra Modi government. Working with the same theme, the Union Budget 2021 will be a game changer," Mr. Agarwal said.

Publisher: The Hindu
Date: 2021-01-28T16:12:24 05:30
Author: PTI
Twitter: @The_Hindu
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Cecilia Rouse, Tapped to be Biden's Top Economist, Brings Labor-Market Focus - WSJ

WASHINGTON—Cecilia Rouse's interest in economics dates to the early 1980s, when she was a college freshman and the country was enduring its worst unemployment since the Great Depression.

"I was drawn to the discipline because I wanted to know why this was happening," Ms. Rouse will testify Thursday to the Senate Banking Committee, which is considering her nomination to be President Biden's top economist. "Why had jobs disappeared—and what could be done to bring them back?"

Publisher: WSJ
Date: 2021-01-28T11:00:00.000Z
Author: Paul Kiernan
Twitter: @WSJ
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