Estimating risks and managing moral hazard are the essence of the insurance business. That is easy to say when discussing moral hazard in a microeconomics course. When you personally are subject to hazardous moral temptation, it is more complicated. That…
Was the boom just an echo?
The money supply is like one of those long balloons that skilled people can twist into entertaining shapes. Once you blow a certain amount of air into the balloon, it is going to show up somewhere. You can squeeze down…
Don’t blame OPEC, cows for price hikes
Price increases for only a few items do not constitute inflation. Keep that in mind when considering news of price hikes for specific goods such as milk or gasoline. Remember also that inflation results from excessive growth in the money…
Funding fundamentals don’t apply to state
The Minnesota Legislature is ending work on its biennial “bonding” or “capital improvements” bill. It considers such spending for building long-life physical facilities separately from appropriations for day-to-day government operations. This distinction between capital and non-capital spending, common in state…