The fiscal authority is Congress (along with the president), which passes budgets regarding federal taxation and expenditures. In economics, these types of actions are called fiscal policy, which means Congress is the fiscal authority. Tax cuts and increased spending can stimulate an economy to fight unemployment, and the opposite actions can cool it down to… Continue reading What Does It Mean When “The Monetary Authority Is Financing the Fiscal Authority”?
(image via The Democracy Labs) One idea is to reform corporate governance away from focusing narrowly on shareholder interests and instead take into account the interests of broader stakeholders. As defined here, stakeholders are “any third party that has some level of dependence upon the corporation” and can include employees, customers, suppliers, and the larger… Continue reading What Do You Think Is the Best Way to Improve Corporate Behavior So as to Prevent Things Like the Opioid Crisis?
Image from goodreads.com I consider All the Devils Are Here to be the best book on the financial crisis I have read so far, edging out Nouriel Roubini's Crisis Economics and significantly better than Michael Lewis's excellent Big Short. Roubini excels more at explaining more of the economics in systemic big-picture terms and also laying… Continue reading Review of All the Devils Are Here
In regards to the big Supreme Court decision on Romneycare Obamacare, there's been much hand-wringing on how this is a tax on doing nothing. This does seem odd, until you realize that a penalty or tax on one group but not on a second group is economically identical to having no penalty or tax on the first group but a tax credit… Continue reading The Economics Behind the Individual Mandate
Now that the economy appears to be on the right track again, I'd like to revisit what I think was the cause of the 2001 recession. I run across too many people who take a partisan stance and blame it on Dubya or blame it on Clinton. Really, the President doesn't have as much power… Continue reading Whom to Blame for the Recession?