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. Marginal Revolution  – Tyler Cowen: ‘The 2014 Nobel Laureate in economics is Jean Tirole’

    On 13 October, the 2014 Nobel Laureate in Economic Sciences was awarded to Jean Marcel Tirole of the University of Toulouse, thus becoming become the first French economist to win the prize in more than 25 years. The committee praised Tirole’s work regarding regulating the influence of oligopolies and operating in situations of asymmetric information. In addition, Tirole is well known for his use of game and contraction theory in order to analyze a specific industry. This post by Tyler Cowen provides findings related to Tirole’s theories as well as links to his most relevant papers. – Ricard Torné

  2. Baker Institute Blog – Russell A. Green: ‘PM Modi’s U.S. visit dull? An economic policy perspective’

    Russell Green points out that the visit of Indian Prime Minister Narendra Modi to the United States was glitzy on the surface but rather boring from an economic policy perspective. Green argues that the, “all the action in the U.S.-India bilateral economic relationship lies in the realm of the private sector, or purely domestic policy.” However, Green also reminds us that many of the most successful economic relationships are boring, such as the one between the U.S. and U.K. Moreover, boring economic relationships are better than those which are tense and politicized, such as the U.S. and China relationship. Carl Kelly

  3. The Grumpy Economist – John H. Cochrane: ‘Why and how we care about inequality’

    Is inequality a problem and why should we care about it? John H. Cochrane, professor at the University of Chicago Booth School of Business, provides a contrarian view on the importance and impact of inequality on the American society, pointing out that the arguments of those identifying inequality as a problem per se don’t hold water. Rather than trying to “fix” inequality by increasing fiscal pressure on the wealthy, governments should tackle the true reasons that generate unequal outcomes in a society; trying to break the link with money and power (which becomes stronger in more unequal societies) will not be solved by increasing the size and scope of state intervention – Armando Ciccarelli

  4. Angry Bear – Edward Lambert: ‘Market discipline leads to a better economy

    Edward Lambert argues that markets need discipline for economic growth and development. Building on Paul Craig Roberts argument that ‘all the discipline is gone’, Lambert uses the example of minimum wage in China to illustrate the benefits of market discipline. When China began enforcing minimum wage, which ‘disciplines’ the labor market,  firms became more productive and net social benefits increased. In addition, Lambert points out that the low Fed rate reflects a lack of discipline that has resulted in firms becoming used to easy money and operating less efficiently. He concludes by arguing that just as firms and banks need discipline, so do markets. Angela Bouzanis

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