BLOG MASH-UP OF THE WEEK

Everyday the blogosphere offers an enormous amount of in-depth analysis on any imaginable topic. The world of macroeconomics and economic forecasting is no exception. To keep themselves updated on the latest information, our in-house team of economists scan the world wide web and gather what they consider the most interesting, appealing, informative or just curious blog posts from experts in the field of global economics. Here’s the list of the Top 4 posts from this week. Check it out!

  1. The Adam Smith Institute Blog – Tim Worstall: ‘The problem with Uber is that there’s no there there

    In recent weeks there has been controversy in several main cities around the world regarding the effects of technological innovation on employment in traditional sectors. This article refers to Uber, an application for smartphones that competes with the usual taxi services. Following the success of the app, it has been valued at USD 17 billion. Given the huge value of what boils down to be a relative simple programming code, its value has also spurred comments and different opinions. The author explains, from a markedly liberal point of view, why these kind of apps shouldn’t be valued at such high levels.” –  Enrique Jorge

  2.  Economonitor –  Shanon Oneil: ‘Mexico Energy Talks’

    Shanon Oneil contributes regularly to the Economonitor blog and in this post she recaps her interview with a Mexican congressman, Jorge Treviño, who is one of the leaders that is pushing for the approval of the energy reform. In her interview she focused on what investors and analysts can expect from the secondary legislation currently being hammered out in Mexico’s Congress—touching on the development of Mexico’s new energy model, national content requirements, the role of state and local governments, and environmental and security considerations.  Ricardo Aceves 

  3.  Conversable economist – Timothy Taylor : ‘Turnover on the Federal Reserve Board of Governors’

    Timothy Taylor explains how there has been unprecedented turnover recently at the Federal Reserve Board of Governors. The Board, which is composed of seven members,  has seen four resignations and another member’s term in office expire since August of last year, which means that President Obama must find five new replacements. So far, only Stanley Fischer has joined the board, with two other nominations pending approval. However, even after they are confirmed there will still be two empty seats. Board members are appointed to 14-year terms and the general pattern is intended to guarantee that the president can make a new appointment once every two years, but recent turnover has interrupted this cycle and left the team short at a point when crucial decisions about the U.S. economy are on the docket, including “when and how to back away from policies of quantitative easing and return interest rates to more historically normal levels.” Taylor does not blame anyone, but is firm in stating that “this is not how the institution is supposed to work.” –  Carl Kelly

  4. Stumbling and Mumbling – Chris Dillow: ‘Militarism and growth

    In this post Chris Dillow comments on neoclassical economist Tyler Cowen’s argument that peace is bad for growth. According to Tyler, the idea of having a war triggers the government to make hard but correct choices and spurs innovation in some fields. In addition, Marxian underconsumptionists add that is preferable to boost the army budget in order to trim down unemployment. However, from a neoclassical point of view, wasting money in the military would be always a bad choice because individuals would allocate resources in a better manner to generate economic growth than the government. Against this backdrop, Chris Dillow asks who is right, Tyler and the Marxian underconsumptionists or the neoclassicals ? – Ricard Torné

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