Category Archives: Economics

Yasheng Huang: What Worked With Japan Won’t Work With China

From the New York Times In the 1980s, the United States threatened sanctions if Japan did not reduce its trade deficit. One consequence — intended or unintended — was that Japanese investments in the United States increased dramatically in response to the punitive sanctions. These are called “tariff-jumping” investments and today there are commentators who […]

Simon Johnson: The End of the Euro is Not About Austerity

From The New York Times Economix Blog Most current policy discussion concerning the euro area is about austerity. Some people, particularly in German government circles, are pushing for tighter fiscal policies in troubled countries (i.e., higher taxes and lower government spending). Others, including in the new French government, are more inclined to push for a […]

Simon Johnson: The Buffett Rule Is a Good Idea

From Huffington Post Some high income Americans pay a lot of tax; others do not. If you have right tax advice and if most of your income can be structured as some form of “capital gains,” your marginal rate — what you pay on the your last dollar of income — may be very low. […]

Prof. Joseph Doyle: Cutting health care costs may have negative impact on patients

No matter how the U.S. Supreme Court rules, one of the hopes underlying health care reform – that the steep cost curve of medical care can be reduced without jeopardizing patient outcomes – will remain. But a new study by me and some fellow researchers challenges that basic view. We studied a “natural experiment,” based […]

Bitter Money Fights Shaped U.S History: From “White House Burning”, a new book by Simon Johnson and James Kwak

From Bloomberg View On June 1, 1812, President James Madison asked Congress to consider a declaration of war against Britain. The Democratic-Republican majority was happy to oblige. Britain’s insults to the U.S. ranged from seizing its ships and forcing its sailors into the Royal Navy to supporting American Indian attacks along the Western frontier. With war approaching, […]