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.
My Ideal Economic Design
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
Why Societies Prosper and Others Stay Poor or Stagnant
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