economics

This is almost total nonsense. The only possible way it could be true is if the amount of intervention in the renminbi was unaffected by the price level, and this is certainly not the case. If it were, the People’s Bank of China should anyway immediately raise the value of the renminbi substantially in order to improve its terms of trade at no cost

The Commission was tasked not only with determining the distribution between Union and States of the net proceeds of taxes, but also reviewing and commenting on the design of fiscal principles for various grants that are typically provided alongside revenue shares. We were, in particular, asked to consider performance-based incentives to support

Second, one very important reason why prices have not gone up as fast as the monetary stock is that both overall production and production per capita have risen steadily almost year by year. With the constant increase in capital investment—in the number, quality,

So now I want you to imagine what happens if the U.S. and its allies get in a major war with China — as analysts say is increasingly possible. In the first few weeks, much the two countries’ stores of munitions — including drones and the batteries that power drones — will be used up. After that, as in Ukraine, it will come down to who can produce

I ended up with a picture in my head of a market economy as a far-from-equilibrium communications network that uses prices to transmit information about wants and scarcities to people who make production and consumption decisions, exactly as Friedrich von Hayek4 explained almost 90 years ago.

Scarcity and Constraints

Another thing economists are obsessed with is scarcity . In data science, we talk about “big data” so much that we forget how scarce good data really is. Most organizations don’t have perfect information; they have partial, biased, noisy data collected under uncertain conditions.

Besides revenue deficit grants, we have recommended grants and incentives for various sectors. These grants revolve around four main themes. The first is social sector, where we have focused on health and education critical to a large and particularly vulnerable subset of the population. Both these sectors face unprecedented challenges with the

What should we do about this fact? Does this throw off market signals about what the bond market is telling us, since the “bond market” in reference to actual private bond investors is less than half of the recent Treasury demand, while a semi-government institution is more than half of Treasury demand, against a backdrop of record Treasury supply

A wholesale bank’s liabilities are repo borrowings, not deposits. This places US Treasury notes and bonds at the very centre of the modern monetary system. Lately, bank regulators have been attempting to further reduce and even remove Treasuries from capital ratio requirements. This should allow banks to significantly expand wholesale bank lending