Photo taken during a meeting in Berlin between Angela Merkel, Georgios Papandreou and Nicolas Sarkozy.
Ricardo Caballero argues, convincingly in my view, that one of the causes of the recent financial crisis lies in the fact that the demand for AAA-rated assets is greater than the supply.
In economics, signalling refers to the idea that one party credibly conveys some information about itself to another party. In evolutionary biology signalling has a more general meaning.
In addition to a hunger for food (and sex) humans appear to have an insatiable hunger for information. And so as their hunger for food is more easily met people have moved from consuming food to consuming concepts.
There are some lessons to be learned from the chaos caused by the recent volcanic eruptions in Iceland.
I am one of the lucky few to snatch a ticket for Peter Stein's 12-hour production of Dostoyevsky's The Demons. The ticket price gives an interesting insight into the economics of the performing arts.
In the aftermath of the financial crisis there was a lot of talk of a crisis in economic science. The Annual Review in Economics proves that the contrary is the case.
Bollywood movies provide cross-country evidence for Baumol's cost disease in the performing arts.