Bitcoin is a digital currency that was launched in 2009, and it has attracted much attention recently. This article reviews the mechanics of the currency and offers some thoughts on its characteristics.
Compared with using monetary policy to prick bubbles, as strongly suggested by Roubini, the ad-hoc fee tool would be market- (or asset-) specific, thus averting the disruptive consequences on the rest of the economy from using coarser (non-selective) instruments like interest rates or credit restraints, as noted by Posen.
Classical liberalism is the philosophy of political liberty from the perspective of a vast history of thought. Libertarianism is the philosophy of liberty from the perspective of its modern revival from the late sixties-early seventies on.
In areas like air pollution, traffic congestion, spectrum allocation, and cigarette consumption, market mechanisms have often proved to be the best way for governments to address market failures. So why are such mechanisms now in retreat almost everywhere?
The tech diagnosis shifts the emphasis from macro to micro, from institutional power imbalances to individual shortcomings, from demand-side to supply-side, from financial market oversight to “the problems with our schools,” even from stimulus to deficits.
Political connections affect economic outcomes in emerging markets. This column discusses new evidence showing that something similar goes on in the US. Over the ten trading days following the announcement of Timothy Geithner as Treasury Secretary, financial firms with a connection to Geithner experienced a cumulative abnormal return of about 12% relative to other financial sector firms. This reversed when his nomination ran into trouble due to unexpected tax issues.