How Chocolate Chip Cookies Explain Why We Save Less

Explained by behavioral economics, we save relatively little for retirement because of intertemporal selfishness and seeing our future selves as strangers.

How Men Act When They Outnumber Women

How gender ratios in the U.S. and China affect men’s financial behavior can be explained with supply and demand and behavioral economics from Gary Becker.

How the Fed Solves the Old Money Problem

Part of keeping the money supply at the right level involves the Fed monitoring the paper money that enters circulation and recycling cash that leaves it.

Expanding How We Measure Inflation

Our CPI measure of the inflation rate has been debated because it could be calculated using a chained CPU, could be real time, and excludes some seniors.

Dodd-Frank: When Is A Law Too Long To Obey?

With debated impact, a little more than half of the thousands of rules necessary for implementing the financial regulation in Dodd-Frank have been written.

The Benefits of Perpetual Federal Debt

Very long term federal debt that has no date for redemption like UK First World War bonds and U.S. Revolutionary War debt depend on good public credit.

The Monetary Policy Mistakes of a Babysitting Co-op

There once was a French economist whose name was Say. Proclaiming that “Supply Creates Its Own Demand,” Jean-Baptiste Say (1767-1832) entered economic history with Say’s Law. All he meant was that workers are also consumers. The money you receive for producing a good or a service…

When Did We Get “Tough Love” From the Federal Reserve?

Demonstrating Russia’s current plight, this graph so perfectly illustrates stagflation: When GDP sinks and inflation increases, the stagflation that results is tough to cure. If monetary authorities target inflation with tight monetary policy, then interest rates go up and further…

One Reason That Quitting is Good

I have read that Fed Chair Janet Yellen is particularly interested in JOLTS. Representing Job Openings and Labor market Turnover Survey, JOLTS data tell an interesting story. You can see how the trend in job openings parallels the Great Recession…

Venezuela Has Cheap Gas But No Cars

At the official exchange rate, Venezuelans pay 5 cents a gallon for premium gasoline while the real price is closer to one half penny a gallon. The dark purple country at the northern tip of South America (below), Venezuela has the…