If there is anything that economists agree on, it is that incentives matter. In other words, people’s decisions are affected by the rewards or penalties attached to each alternative they consider. Furthermore, incentives are important whether they are monetary or…
The New Internet Economy: How Big?
(Included as a special report on e-business included in several newspapers.) The adjectives and dollar figures being used to describe the potential of business-to-business Internet commerce have been nothing short of hyperbolic. Expect “trillions of dollars wroth of transactions” in…
So euro is weak – who cares? U.S. farmers, plenty of others
Americans still do not understand the effects of exchange rate fluctuations on their economy. At least that is the lesson one might take from examining how recent strengthening of the U.S. dollar is reported in the media. This is another…
Should Federal Reserve try slow escalation or knockout punch?
Is it better to slowly ratchet up the pressure or to hit hard all at once? This tactical question is one that central bankers share with generals—even though their objectives are quite different. Recent U.S. military history favors the hit-‘em-hard…