- Economic growth may just make the whole society happier.
- Tyler Cowen on Reexamining the benefits of free trade.
If there is any piece that can get Dani Rodrik blogging again, this is it.
- Gary Becker on the Determinants of the Olympic Success of Different Countries.
- Richard Posner on Financing the Olympic Games.
- Oxonomics asks What causes inflation?
- Rebecca Hellerstein and Cédric Tille look at Financial factors and the current account: Is volatility a concern?
Financial globalisation has made current account balances more sensitive to volatile variables like asset prices and interest rates. This column says that greater current account volatility may be good news if it comes in the form of countercyclical risk sharing.
- Greg Mankiw has More on Obamanomics.
- Charles W. Calomiris on the The subprime turmoil: What’s old, what’s new, and what’s next
The subprime crisis is the joint product of perverse incentives and historical flukes. This column explains why market actors made unrealistic assumptions about mortgage-backed securities and how various regulatory policies exacerbated the problem. The crisis will necessitate changes in monetary policy, regulation, and the structure of financial intermediation.