When it comes to economic policy, decision-makers rarely face a choice between good and bad. More often, it’s a matter of deciding what’s better or worse. For example, I argued recently that the Fed tightening of the money supply was…
To survive, airlines must play the game
The saying “life is just a game” is not true, but the survival of some companies may depend on acting as if it is. Bear that in mind as Northwest Airlines’ bankruptcy proceedings and union negotiations play out. The airline…
Conflicts of interest hurt whole economy
The world is rife with principal-agent problems, and society suffers greatly as a result. What economists describe as principal-agent problems is roughly what the general public calls conflicts of interest, though the problems are broader in scope. Last week, clients…
Next Fed chair: Academic, practitioner or both?
Which is more important, education or experience? This question arose this week in the Senate grilling of John Roberts, the president’s nominee to replace the late Chief Justice William Rehnquist. Did Roberts’ lack of experience with Congress, for example, make…