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.

Our Weekly Roundup: From Argentina to North Dakota

Today’s weekly roundup includes the everyday economics of sovereign debt defaults, oil boom towns, athletes’ labor markets and the GDP.

Argentina's (Long) Default History

With Argentina again defaulting on her sovereign debt, she is violating the sanctity of contracts and lessened her borrowing ability at home and globally.

Greece Again?

With more austerity resistance to government spending cutbacks, Greece could again be heading for a sovereign debt default and a bailout.

Sovereign Debt: Is Argentina’s Default Legal?

Does Argentina still owe bondholders the money? The US Supreme Court might decide. It all began with what scholars Rogoff and Reinhart called the lending boom of the 1990s. Enjoying an influx of dollars, Argentina borrowed and grew and prospered…for awhile.  But…

Opportunity Cost: Winning the 2020 Olympics

First, Doha and Baku were eliminated and then Madrid. Competing against Istanbul in the final vote for the 2020 Summer Olympics, Tokyo won. Here are the IOC voting results: Round 1 Tokyo: 42 Istanbul: 26 Madrid: 26 Round 1 tie-breaker Istanbul: 49 Madrid:…

Confirmation Bias: How Might Basketball Provide Economic Insight?

Although fans think a basketball player can have “hot hands,” psychologists disagree. We might just be displaying our tendency to select facts that support what we already believe–our confirmation bias. Citing the “hot-hand phenomenon,” many basketball fans believe that players…

Some Greek Math

With a euro zone update on Greece unfolding (they might lease some islands but we’ll get to that in a moment), here is some Greek math that Michael Lewis presents in Boomerang. Referring to the deficit, during October 2009, the…

A Euro Zone Olympic team?

Sharing a larger and more varied pool of European talent was supposed to create an economic synergy. Starting with the European Coal and Steel Community in 1951, the first step was free trade. Nations were added, trade barriers disappeared, and…

Economic Independence Day

Alexander Hamilton must have been worried. In 1790, as Secretary of the Treasury, a troubled economy had become his responsibility. He had a huge federal debt to fund, a banking sector that was distressed, and an economy to stimulate. Sound…