The Fed Should Buy Stocks instead of Bonds
Financial Times Economists' Blog, August 6, 2012
The Federal Reserve may just as well be putting the cart before the horse with a third round of quantitative easing. In that case Bernanke would be wise, if he were to employ the printing presses following the FOMC’s September meeting, to buy stocks instead.
From Endeavor to Achievement and Back Again: Government's Greatest Hits in Peril
In To Promote the General Welfare: The Case for Big Government. Steven Conn, Ed., Oxford Univeristy Press
Paul C. Light
"These 10 articles from leading scholars address federal government activism in such areas as health, education, transportation, and the arts. In some areas, federal involvement has been direct; for example, while school public systems are governed locally, Washington provides about 10% of k–12 funding. Similarly, antipoverty programs, such as the New Deal’s Social Security Act and Aid for Dependent Children, have played a major role in reducing the poverty rate from around 40% in 1900 to 11.2% in 1974. At other times, Washington has exerted influence more subtly, through regulations and research. Examples include the 1933 Glass-Steagall Act, which mandated the separation of investment and commercial banking and the WWII-era research that yielded compounds to prevent and cure malaria, syphilis, and tuberculosis. Further, as public policy scholar Paul C. Light points out in a fascinating concluding piece, more than two-thirds of leading governmental initiatives have been supported by both Democratic and Republican administrations. However, Light adds, the massive tax cut in 2001 “continue[s] to constrain federal investment in problem solving.” The scholars brought together by Ohio State historian Conn (History’s Shadow) persuasively demonstrate how the growth of “big government” throughout the 20th century has benefited ordinary Americans so comprehensively and unobtrusively that they have often taken it for granted."
Examining the Determinants of Nonprofit Accounting Basis Choice
Why Do Nonprofits Retain Unrestricted Net Assets? Evidence from Panel Data, and Policy Implications?
China's Reliable Rise
Project Syndicate, July 25, 2012.
if China’s official growth estimates are untrustworthy, why do world stock markets continue to respond to them?
Evaluating the Global Crisis
Public Administration Review, Volume 72, Issue 6, Pages 779 - 949, November/December 2012
Does News on Real Chinese GDP Growth Impact Stock Markets?
Journal for Applied Financial Economics, 2011, 21, 61–66.
Real Gross Domestic Product (GDP) growth in China follows a random walk. Also, it has often been suggested that China ‘cooks its books’, that is to say that governmental officials in China manipulate economic statistics, such as GDP growth rate to present the outside world a rosy picture (Foreign Policy, 3 September 2009). If such unreliability is known to stock traders, news on GDP should not impact stock market fluctuations or their volatility. We test this hypothesis for 12 series with daily stock market returns for the years 2006 to and including 2009.
Affirmative Action for Europe
In Le Monde on December 2, 2005.
The violence in France, fueled by staggering unemployment and ruthless policing, reflects the utter failure of the French model of social integration. But violence elsewhere in Europe, such as the London bombings of July and the brutal murder of Dutch filmmaker Theo van Gogh on the streets of Amsterdam in November 2004, had already made Europe’s failure to integrate its minorities painfully clear.
Europe's Leisure Trap
By Project Syndicate on June 23, 2006.
Black Friday in the United States traditionally is the day after Thanksgiving that signals the start of the holiday season sale. At daybreak, people line up before department stores to get the special “early bird” bargains. In Europe, black Saturday falls in the last weekend of July, when the French and other Europeans set off in droves for their Mediterranean holiday destinations, and highways get jammed with traffic.
Beyond the Gender Gap
By Project Syndicate on January 31, 2007.
Last Spring, The Economist trumpeted “womanpower” as the driving force for the world economy. But if Europe’s economy is to become more competitive and innovative, it is not enough that women enter the labor market in droves. To reap the full fruits of women’s talents, they must be in more top jobs, too, both in the public and private sector.
China is Buying Europe
In The International Herald Tribune on July 29, 2007.
It's quite fascinating to see the way authoritarian regimes make use of the possibilities free markets offer to expand their global reach. While the West thought that free trade was going to spread democracy across the world, the opposite seems to be happening now.
Wars against Women
By Project Syndicate on May 26, 2008.
Truth is often said to be the first casualty in wartime. But if the real truth is told, it is women who are the first casualties. In conflict zones, the United Nations children’s agency UNICEF recently observed, sexual violence usually spreads like an epidemic. Whether it is civil war, pogroms, or other armed conflicts, all too often women’s bodies become part of the battlefield. The victims of large-scale sexual atrocities range from baby girls to old women.
The Cost of the Gender Gap
By Project Syndicate on August 29, 2007.
Working women throughout the world have long complained of the unfairness implied by lower pay than what men receive. But the wage disparity between men and women is more than unjust. It is also economically harmful.
Why We Must Break the Male Cartel in the Work Place
In the Financial Times on April 23, 2008.
The European Union should follow the example set by Norway and Spain and introduce European legislation for gender balance on company boards, at universities and in government. It is the best way to end the culture of gender bias and stereotyping that is still prevalent in many companies and institutions. Isn’t it time we reaped all the fruits that women have to offer?
Does Legalizing Prostitution Work?
By Project Syndicate on January 23, 2009.
Prostitution is virtually the only part of the personal services industry in the Netherlands that works. One can’t get a manicure in Amsterdam without booking an appointment two weeks in advance, but men can buy sex anytime – and at an attractive price.
Going Dutch? Not So Fast!
In The New York Times on May 24, 2009.
In his essay “Warming to the European way” (May 2), Russell Shorto sounds the praises of the Dutch welfare state. However, the Dutch welfare state isn’t as beneficial to low-skilled immigrants as it is to high-skilled workers like Mr. Shorto. In fact, it has suffocated the large group of non-Western immigrants who came to the Netherlands over the past decades to seek their fortune.
Don't Blame the Euro
By EuroIntelligence on June 10, 2010.
With all the turbulence rocking the financial markets and the sharp drop in the euro’s exchange rate, you could almost forget that the single European currency has been quite a success.
Germany is not China
By Project Syndicate on August 16, 2010.
There is little dispute that global imbalances in trade and capital flows are at least partly to blame for the financial crisis and ensuing recession that have rocked the world economy since 2008. But not all imbalances are created equal, so it is important to weigh the consequences of individual countries’ external accounts for global economic stability and prosperity.
The False Panacea of Labor Market Flexibility
By Project Syndicate, March 22, 2011.
We now know that labor-market deregulation does not ensure economic resilience and rapid job creation. On the contrary, the best solution is probably a diversity of labor contracts. A certain amount of labor-market rigidity may make economic sense for jobs that require firm-specific skills and training, alongside greater flexibility for jobs that require fewer skills.
Beware of Runaway Headline Inflation
In VoxEU on May 3, 2011.
The latest figures from the US show that the consumer price index rose 0.5% in March, whilst the core personal consumption expenditure price index rose only 0.1%. This column explains the roles of these competing measures and argues that US monetary policymakers should pay close attention to headline inflation. It warns that neglecting headline inflation risks feverish boom-and-bust cycles with prolonged periods of high unemployment.