A Second Globalization Features The Great Convergence

In previous blog postings (here and here), I have addressed some of the key myths regarding international trade as well as the difficulties in determining whether U.S. exchange rates are over, under, or fairly valued.  This posting addresses how the forces that drive globalization have changed and so has the distribution of income (in both … More A Second Globalization Features The Great Convergence

Are High Risk Pools the Best Way to Keep Down Premiums in the Non-Group Insurance Market?

In my previous posting on the ACA, I posited five questions that serious health policy reform should address.  High risk pools form part of a response to the first question:  Who should pay for the predictably expensive (such as those with chronic disease)? Based on Statistical Brief #497 (SB497)  from the Agency for Healthcare Research … More Are High Risk Pools the Best Way to Keep Down Premiums in the Non-Group Insurance Market?

Are U.S. Exchange Rates Too High, Too Low, or Just Right?

Currency exchanges rates between any two countries are determined by a variety of factors including their balance of trade and payments, capital flows (both restricted and unrestricted), and monetary policies.  In a recent posting on Conversable Economics, Timothy Taylor argued that “all exchange rates are bad” (meaning that they generate some negative consequences.)  Although this … More Are U.S. Exchange Rates Too High, Too Low, or Just Right?

Monetary Policy in an Age of Radical Uncertainty (reposting)

This commentary was originally posted on July 25th, 2016. Central bankers in all major developed economies have adopted NIRP, ZIRP, or near ZIRP policies.  The Bank of Japan and the European Central Bank now “offer” negative interest rates (NIRP) on deposits and project to do so for the foreseeable future.  The Bank of England and […]

More Monetary Policy in an Age of Radical Uncertainty (reposting)

Myths About International Trade

This blog posting seeks to provide some starting points for discussion about the benefits and costs of international trade.  In this particular posting, I address aggregate national considerations and do not address either exchange rate effects or distributional effects within the U.S. or any other country. Those will be topics for future postings. In order to make … More Myths About International Trade

Human vs. Digital Labor: Will The Results This Time Be Different?

Since the industrial revolution in England in the 19th century, many policy makers and the public at large have been concerned about the effects of automation on jobs.  For example in 1961, Time magazine published a provocative article entitled “The Automation Jobless,” which posited that efficient machines and productivity improvement would eliminate many low and … More Human vs. Digital Labor: Will The Results This Time Be Different?