The conformity of economic papers
Which types of economic papers are getting published? Heckman on how journals reinforce tired orthodoxies in economics.
Cecchetti and Schoenholtz on what has become of Bitcoin. Larry White on the new dollar-pegged cryptocurrencies and Bordo and Levin on central bank issued digital currency.
The future of banking
Is fintech the future of banking? Larry Summers and Christine Lagarde argue the pros and the cons. New research explains why the UK is now the largest fintech market in the world.
New research on the r-star
Has the equilibrium real interest rate declined? Two new research papers dispute this recent research finding. What policy rule should Central Banks follow when the level of r-star is uncertain, asks John Williams, of the San Francisco Fed.
After the French elections: Views from the US
What does the Macron victory imply for the future of Eurozone? Opinions from Jacob Funk Kirkegaard, Paul Krugman and John Cochrane. Steve Cecchetti and Kim Schoenholtz are starting to worry about Italy now.
The declining share of labor
In the last couple of years many theories have been put forth explaining the decline of the labor share in advanced countries. In this newsletter we present a recent research which suggests that monopoly power together with globalization better explain the reduction in labor share.
British Pound: Topsy-Turvy
Gourinchas and al and Wren-Lewis have been expecting for the pound to continue depreciating without benefiting the UK economy. But the announcement of the June 8 general election might reverse the trend as new research by Sornette and al. indicates and Didion evaluates Prime Minister May’s negotiating strategy.
Three new papers on expectations
Three interesting research papers have recently been published on alternative ways to formulate expectations: Coibio Gorodnichenko and Kamdar write on imperfect information, Khaw, Li and Woodford on myopia, and Gabaix and Laibson on distorted perceptions.
The new oil market
How will this tug of war between OPEC and US shale oil producers will affect the balance between oil supply and demand going forward? This is the question that new research from the IMF and the University of Michigan are trying to answer.