background preloader

Grasping Reality with Both Hands

In economics, the Dutch disease is the apparent relationship between the increase in exploitation of natural resources and a decline in the manufacturing sector (or agriculture). The mechanism is that an increase in revenues from natural resources (or inflows of foreign aid) will make a given nation's currency stronger compared to that of other nations (manifest in an exchange rate), resulting in the nation's other exports becoming more expensive for other countries to buy, making the manufacturing sector less competitive. While it most often refers to natural resource discovery, it can also refer to "any development that results in a large inflow of foreign currency, including a sharp surge in natural resource prices, foreign assistance, and foreign direct investment". The term was coined in 1977 by The Economist to describe the decline of the manufacturing sector in the Netherlands after the discovery of a large natural gas field in 1959.

http://delong.typepad.com/

Related:  EconomicsMedia, social media and New mediaEco blogs & sitesNew Econ

Vickrey, William. 1996. 15 Fatal Fallacies of Financial Fundamentalism Fifteen Fatal Fallacies of Financial Fundamentalism A Disquisition on Demand Side Economics William Vickrey October 5, 1996 Much of the conventional economic wisdom prevailing in financial circles, largely subscribed to as a basis for governmental policy, and widely accepted by the media and the public, is based on incomplete analysis, contrafactual assumptions, and false analogy. For instance, encouragement to saving is advocated without attention to the fact that for most people encouraging saving is equivalent to discouraging consumption and reducing market demand, and a purchase by a consumer or a government is also income to vendors and suppliers, and government debt is also an asset. Equally fallacious are implications that what is possible or desirable for individuals one at a time will be equally possible or desirable for all who might wish to do so or for the economy as a whole.

Media Commentary — Callie Schweitzer How We Internet: Finding the right news among too many options: The days of waiting for the newspaper thud outside the front door are over, and it’s no longer up to the editors of the New York Times to decide the lead story of the day. The process of getting news involves more choice than ever. Investors Need to Look Well Beyond the Inauguration - Bloomberg View Investors always try to predict what’s going to happen in the short-term -- and that's probably all the more the case with the inauguration of Donald Trump as the 45th president of the U.S. just a day away. Intelligent investors, however, understand that the long-term is the only time horizon that matters. One of the best ways to plan for the long-term is by setting reasonable expectations. What's considered reasonable based on where we stand today? Hint: Lower your expectations for future stock market returns in the U.S., expect higher returns in foreign equities and brush up on your bond math.

The 1% are the very best destroyers of wealth the world has ever seen If wealth was the inevitable result of hard work and enterprise, every woman in Africa would be a millionaire. The claims that the ultra-rich 1% make for themselves – that they are possessed of unique intelligence or creativity or drive – are examples of the self-attribution fallacy. This means crediting yourself with outcomes for which you weren't responsible. Many of those who are rich today got there because they were able to capture certain jobs. This capture owes less to talent and intelligence than to a combination of the ruthless exploitation of others and accidents of birth, as such jobs are taken disproportionately by people born in certain places and into certain classes.

About - Digital Media Research Centre Our vision The Digital Media Research Centre (DMRC) conducts world-leading research that helps society understand and adapt to the social, cultural and economic transformations associated with digital media technologies. Aims and objectives Digital media have become a near-ubiquitous part of our everyday lives.

The RAND Journal of Economics Winter 2014 Volume 45, Issue 4, Pages 675–917 In This Issue Back Issues of the RAND Journal of Economics Individual articles and issues from 2006 to present are available either with a subscription or for a fee from Wiley-Blackwell Publishing. Articles and issues from 1970 through 2005 are provided for a fee from Editorial Express. Why Libertarians Should Oppose the Universal Basic Income, Bryan Caplan Here's my opening statement for my Students for Liberty debate with Will Wilkinson. Enjoy. Libertarians have a standard set of fundamental criticisms of the welfare state. The Neuroeconomics Revolution - Robert J. Shiller Exit from comment view mode. Click to hide this space NEW HAVEN – Economics is at the start of a revolution that is traceable to an unexpected source: medical schools and their research facilities. Neuroscience – the science of how the brain, that physical organ inside one’s head, really works – is beginning to change the way we think about how people make decisions.

Social Media Toolkit This is a collection of tips, recommendations, tools and pieces of social media best practice. Compiled by The Open University's Social Media Team, it’s primarily aimed at colleagues who use social media in a professional capacity. This includes: People managing accounts as The Open UniversityPeople managing accounts as a nation, faculty, department, unit or any other part of the OUAcademic staff with personal accounts who post about their work

David Leonhardt - Economix Blog Julian Simon, frustrated by the huge attention that Paul Ehrlich was receiving for his apocalyptic warnings about overpopulation, offered Mr. Ehrlich a bet in 1980. If a selected basket of commodities became more expensive over the coming decade — which would signal scarcity caused by a crowded planet — Mr. Ehrlich, an ecologist, would win the bet. If the commodities fell in price — signaling a triumph of human ingenuity — Mr.

Related: