Noel Maurer and Carlos Yu have a new working paper on: What Roosevelt Took: The Economic Impact of the Panama Canal, 1903-29. Unsurprisingly, they argue that the United States, not Panama, benefited the most from the canal’s construction. (Didn’t everyone know this going in?) They then draw a warning for other developing countries:
The third task of management is managing the social impact and the social responsibilities of enterprise. None of our institutions exists by itself and is an end in itself. Every one is an organ of society and exists for the sake of society. Business is no exception. Free enterprise cannot be justified as being good for business; it can be justified only as being good for society.
No, not the latest piece of global climate change data (although the recent pieces on acidified oceans and icequakes ring the warning bell even louder). This time it's good news. A few years ago, civil society called upon bankers to take greater responsibility for the projects in which they invest. And something remarkable happened.
Today, New Zealand is often invoked as an example of the benefits pro-market reforms can create. But before these reforms began to be enacted back in 1984, the story was quite different:
Do you like margarine?
Margarine had to be an unappetizing off-white color, for it was deemed that yellow margarine would pose undue competition for butter producers.
How about an affordable TV?
From Raj Nallari and Breda Griffith's lecture notes.
Fiscal Policy and its Impacts
Through its decisions on fiscal policy, government can attempt to smooth business cycles and redistribute income. While these are good goals, overreaching on the fiscal side can lead to crowding out and inflation. Today we discuss these important issues.
Fiscal policy and the business cycle
I just received a copy of (former-World Banker) Deepak Lal’s latest book, “Reviving the Invisible Hand: The Case for Classical Liberalism in the Twe