When asked whether supply or demand was more important, the great British economist Alfred Marshall (1842-1924) responded by comparing them to the blades of a scissors. “Which blade cuts the cloth, the upper or the lower?” he asked. U.S. policy…
Reserves, recruits, returns
The decision to suddenly stick to the letter of a contract can cause a great deal of confusion if the parties have previously operated on a looser interpretation of the agreement. The Defense Department’s decision to force some 5,600 members…
Our diversity has developed into economic asset
As we celebrate our independence, it is good to reflect on the fact that while we are ethnically and religiously diverse, we do not suffer the economic damage that can result from sectarian strife. Differences exist. The cemetery where my…
Nowhere to go but up
The Fed did not surprise anyone Wednesday when it finally acted to slow the growth of the money supply. While the one-quarter percentage point change in the Fed funds target rate, to 1.25 percent, was modest and entirely expected, it…