Economic Logic

In standard economic theory, any friction that inhibits the clearing of markets or efficient allocations is viewed as bad, and so it should....

There was a time where central banks liked to surprise markets. Macroeconomic theory dictated then that central banks should be secretive an...

It is quite obvious that journals will only publish results that are significant in the statistical sense. If it turns out that X does not i...

It sucks being unemployed. You have a significant loss in income and your self-esteem takes a hit, for example. However, you enjoy significa...

What makes countries grow? That is probably the most important question in economics, especially when you think about the huge differences i...

When a good is exported and exchange rates fluctuate, how much of the exchange rate change is reflected in local pricing? Establishing the e...

If you manage to get a labor economist and a macroeconomist to talk to each other, invariably the conversation will turn to the fact that ma...

In developing economies, savings decisions are characterized by an important lack of commitment. People are aware of this and try to overcom...

In properly functioning asset markets, the price is supposed to reflect the available information. Even when someone has privileged informat...

I have had recently the opportunity to chat with a missionary who has been working as a bush doctor in Western Africa. I find it quite admir...

When Hurricane Sandy hit the East coast of the US, relatively few people died, there was considerable damage, but no long term consequences ...

Fiscal policy being in complete disarray and unpredictable in the United Sates, economic policy is currently limited to monetary policy. But...

Classical concerts comes with a set of very strict rules for the public: you cannot applaud while the music plays (the only exception being ...

What is the impact of capital gains tax on share prices? It should be rather high, as stock shares main point is to appreciate. But assessin...

I have written before about the fact that so few people take annuities upon their retirement. While several reasons have been proposed, the...