Weekly Roundup: From Nibbling Nachos to Sipping Starbucks

Our everyday economics includes risk, externalities, purchasing power, complementary goods, capitalism, money supply, human capital, and innovation.

Disaster Economics

Assume an economy has been steadily growing. Then a natural disaster strikes, maybe a hurricane, an earthquake, or a tsunami. How is growth affected? While conclusions differ slightly, the consensus indicates that after 5 years and sometimes much sooner, previous…