Economics

A Closer Look at the Wells Fargo Scandal

Stephen Davis— If you need an example of how the financial system has failed the test of public trust, look no further than Wells Fargo. But it is vital to go deeper than the headline story about fraudulent cross-selling into systemic miscarriages of governance and shareholder oversight. The scandal appears

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The Globalization of the Industrial and Financial Revolutions in the 19th Century

Meghnad Desai— The second half of the nineteenth century witnessed one of the many episodes of globalization. This one was built on the industrial and financial revolutions. The new inventions in transport and communications – railroads, steamships and the introduction of the telegraph – had connected the many parts of

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The Struggle to Define Strong Sustainability

Dieter Helm— The trouble with strong sustainability is that it contains very little by way of guidance as to what we should do, except ‘preserve everything’. It is in essence the claim that natural capital should be regarded as non-substitutable, and hence, following Eric Neumayer, strong sustainability can be called

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“Earning to Give” Leads to Happiness

Peter Singer— In 2013 an article in the Washington Post featured Jason Trigg, an MIT computer science graduate working in finance and giving half of his salary to the Against Malaria Foundation. Trigg was described as part of “an emerging class of young professionals in America and Britain” for whom

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The Price of the Carthaginian Policy in Greece

James K. Galbraith— In the United States we do not consider that there is such a thing as a people of Florida or Rhode Island or even of Texas, who have specific and intrinsic rights to their houses and businesses; nor apart from “buy local” campaigns do we care whether

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Why Trump and Sanders Are Both Wrong About Trade

Stephen Roach— From Donald Trump to Bernie Sanders, the trade debate and its impact on American workers is being distorted at both ends of the political spectrum. I will dispense with the politically correct critique of foreign trade.  As a card-carrying economist I am certainly familiar with the benefits of

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Why Income Inequality Matters

Matthew Drennan— In the presidential campaign of 2012 there was hardly a mention of income inequality. This time is different. Even the Republican candidates say that it is a problem. The current candidates should address income inequality and not just mouth stale bromides. They should frame the issue around three

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The Relationship between Law and Economics

Guido Calabresi— A century and a half ago John Stuart Mill said of English philosopher and political radical Jeremy Bentham, in effect, that he approached the world as a stranger. And, if the world did not fit his theory, utilitarianism, he dismissed what the world did as nonsense. Mill then said

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Brazil’s Meltdown

William R. Summerhill— Brazil is mired in its worst crisis in more than thirty years. The economy and employment are shrinking, while high inflation is eroding consumers’ purchasing power.  The currency has tanked, and along with it the government’s benchmark bond. A major corruption scandal that has already implicated national politicians,

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The Sky is not Falling—the Truth about China’s Economy

Michael Murphree and Dan Breznitz— The front pages are crowded with eye-grabbing headlines declaring that the end is nigh for the Chinese economic miracle. The stock market collapse over the last three months as well as signs of declining energy consumption, slower export growth, and declining demand for industrial raw

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