In studies, forecasts and recommendations to governments, markets are seen as capable of processing so-called rational information. Economists claim that firms’ market prices result from rational expectation about their future monetary flows and intangible assets not accounted by bookkeeping, which, however, would enable those future monetary flows to occur. It is quite difficult to find […]
War in Ukraine might give the Chinese yuan the boost it needs to become a major global currency — and be a serious contender against the US dollar
The Chinese economy’s sheer size and rapid growth are impressive. China maintained one of the highest economic growth rates in the world for more than a quarter of a century, helping lift over 800 million people out of poverty in just a few decades. The country is the largest exporter in the world and the […]
Jobs are up! Wages are up! So why am I as an economist so gloomy?
In any other time, the jobs news that came down on Dec. 2, 2022, would be reason for cheer. The U.S. added 263,000 nonfarm jobs in November, leaving the unemployment rate at a low 3.7%. Moreover, wages are up – with average hourly pay jumping 5.1% compared with a year earlier. So why am I […]
winners, losers and ways forward
Lecturers in Nigerian public universities have embarked on strikes 16 times since 1999. Cumulatively, the public universities have lost about 50 months of their academic calendar to these actions in the last 23 years. The reasons for the strikes generally relate to funding and salary issues. Nigeria has 217 licensed universities. The federal government runs […]
5 policies for Biden’s next climate bill
President Joe Biden’s new climate strategy, announced after his original plan crumbled under opposition in Congress, will represent a historic investment in clean energy technology and infrastructure if it is enacted. But it is still not likely to be enough to meet the administration’s emissions reduction goals for 2030. As director of the Fletcher School’s […]
Nigeria’s transport grant isn’t the best way to allocate fuel subsidy savings: here’s what is
Following unrelenting pressure by the International Monetary Fund (IMF) and World Bank, the Nigerian government intends to eliminate its fuel subsidy in July 2022. Nigeria spent about N10 trillion (currently US$24.5 billion) on petroleum subsidies between 2006 and 2018. About $2.5 billion was spent on fuel subsidies in 2020. It is expected that the subsidy […]
Jobs report hints that Fed policy is paying off – and that a ‘growth recession’ awaits
The latest jobs report is in, and the good news is Federal Reserve policy on inflation appears to be working. The bad news is Fed policy on inflation appears to be working. The March 2023 jobs report reveals that the U.S. economy added 236,000 jobs during the month – roughly in line with expectations. A […]
In fractious debate, GOP candidates find common ground on cause of inflation woes and need for school choice
It was a night in which even “the great communicator” himself may have struggled to be heard. At the Ronald Reagan Presidential Library in California on Sept. 27, 2023, seven Republican candidates looking to become the leading challenger to the absent GOP front-runner Donald Trump interrupted, cross-talked and bickered – often to the exasperation of […]
As home prices soar, we have an inquiry almost designed not to tell us why
Never has an inquiry into the skyrocketing price of homes been more urgent. Rarely has one been as insultingly ill-suited as the one under way right now. Midway through last year in the midst of COVID, the average forecast of the 22 leading economists who took part in The Conversation mid-year survey was for no […]
If the US defaults on debt, expect the dollar to fall – and with it, Americans’ standard of living
Congress has seemingly kicked the debt ceiling deadline down the road – but the threat of a future default still exists. On Oct. 7, 2021, lawmakers in the Senate agreed to extend the government’s ability to borrow until December. It came after Senate Minority Leader Mitch McConnell offered a temporary suspension to the debt limit, […]