Edward Prescott and Finn Kydland won the Nobel Prize in 2004 for their contributions to dynamic macroeconomics: the time consistency of economic policy and the driving forces behind business cycles." In other words, how present-day government decisions don't account for future government decisions.
A friend messaged me on Facebook asking, "If I could build my own economic system, what would it look like?" I responded quickly by letting him know I’d send my thoughts to him the next day. Well, two weeks have gone by and I have finally decided to take a stab at this quite daunting … Continue reading My Ideal Economic Design
It is all too easy to confuse the evidence of prosperity with its cause. An educated population, access to capital and sound financial markets, a diverse and productive labor force, innovative businesses, and general material abundance are surely hallmarks of a prosperous society. Yet these features merely describe prosperity. They do not explain it. These … Continue reading Why Societies Prosper and Others Stay Poor or Stagnant