Here are some really great stories that i thought i’d share.
Inflation, a double edged sword? – The Mises Economics Blog explores the inflationary implications of the US’s trillion dollar bailout of the banks. It talks of how although pushing the inflation button and increasing the money supply is easy to do, the hard part is reigning it back in. Although its presumtion that contrationary monetary policy after a ‘recovery’ ‘would also reduce bank reserves, reduce credit availability and loans, and increase interest rates’ is true, this does not have quite the ominous ring to it as is hoped by the writer. Once the economy is ‘recovered’ such a reigning in may be necessary to curb inflation and may be the only option available and may not be all that destructive. Their call back to the Gold standard at the end of it though, seems hardly viable. But a great read nonetheless.
Googlenomics – Ever wondered how google manages to make so much of money while giving away most of their products for free? Ads right? Ever wonder how their system of advertising actually works? Its an economy unto itself thats what it is. Google initialy went the traditional way by having salesmen solicit advertising but then they discovered Adwords (toted by some as the greatest business discovery ever). Adwords uses auction theory to have a cost efficient way of selling advertising to bidders. But theres way more to it than this. Google employs a Chief Economist and also has Macro and Micro elements to its operation. This article is a brilliant read. Thanks to Brad De Long for the pointer.
A good time to die – The Adam Smith Institute Blog. The Us has what they call an estate tax where they have this massiv tax imposed on estates over a certain value when the ownder dies. The estate tax has been largely reduced through Bush pressure and is set to come to zero by 2010. But will return in full force (fifty percent) by 2011. This read explores the possibility of more rich people dying in 2010. Its even a bit morbidly funny. If you’ll forgive my insensitivity.
China, The US State Department – This account of China is not exactly some obscure study of sensational interest but gives you everything you need to know about the more recent (special emphasis on the last century) Socio-political and economic activity of what will probably become the the worlds biggest economy in ten years. Interesting learning point for me was the Taiwanese political connection and its origins.