Thursday, November 26, 2020

Integrating Psychology with Economics | Q&A with Hersh Shefrin & Shlomo Benartzi

This weekend is a big one for behavioral economics. This morning, Richard Thaler, laureate of The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2017, has presented his prize lecture "Integrating economics with psychology" in The Royal Swedish Academy of Sciences. And this Sunday will be the Nobel Prize Award Ceremony, Prof. Thaler will finally the well-deserved Nobel prize.To celebrate this occasion, I am honored to share with you my interview with two of the best co-authors of Prof. Thaler --- Hersh Shefrin and Shlomo Benartzi.

100% Reserve System is coming? – The Swiss Sovereign Money Referendum

The Swiss sovereign-money referendum, also known as the Sovereign-Money Initiative, which aims to creates a safe and crisis-free, yet experimental, banking system in Switzerland will be held on 10th June.

What is Hysteresis?

Hysteresis is referred to the hypothesis that recessions may have permanent effects on the level of output relative to trend.

Phillips Curve is Not a Straight Line…

A story about three economists agree with the prevailing consensus that the Phillips Curve of the US is flattened in the last few decades on the one hand; and dispute the idea that the Phillips Curve is dead on the other.

Hong Kong Linked Exchange Rate & HKD-USD interest rate differential

HKD tends to be on the strong side (closer to HKD 7.75 per USD) when the interest rate differential is positive (HIBOR > LIBOR).

Financial Markets Face Fresh Wave of Political Uncertainty… generated by one Hong Kong Newspaper?

In recent months, the Global Economic Policy Uncertainty index has risen to a level much higher than periods around the 911 Terrorist Attack or the 2008 Financial Crisis, hence the conclusion that the economic policy is unprecedently uncertain now.But here is why you might not have to worry.

Why hadn’t the Federal Reserve rescued Lehman Brothers ten years ago?

This week, the trio who was directly responsible for the decision to let Lehman fail – Bernanke, Tim Geithner (then New York Fed President), and Hank Paulson (then Treasury Secretary) – joined together at a panel held by Brookings Institution and spoke about the lessons they had learned from the crisis.

“Concrete Economics” Review

Prof. Brad Delong's blogs, either "bradford-delong.com" or over at " Equitable Growth" , are definitely two of the most influential economics blogs in the blogosphere, and I read both of them daily. More than...

Blanchard’s “Policy Model” v “Theory Model”

Back in November last year, Professor Olivier Blanchard discussed with me about his view that there should be four types of macroeconomics, and "theory models" like DSGEs is just one of them. Here is...

Paul Romer is worried about Macroeconomics… and what others think about his worries…

Paul Romer's latest paper "The Trouble with Macroeconomics" is definitely one of the hottest topic in the economics blogosphere. The central message is that Romer thinks the state of Macroeconomics has been going backward...