Economics @ ITT

What If Black America Were a Country?

Posted in economics by ittecon on October 14, 2014

If black America were a nation-state, how would it stack up against other countries? How would it fare on standard measures of national power and weakness?

via What If Black America Were a Country? – The Atlantic.

Are Interest Rates Really That Important?

Posted in Uncategorized by ittecon on October 13, 2014

Nice thought piece on the relevance of interest rates.

Whistling In The Wind

There is something I never got about interest rates. There is a consensus across economists that interest rates have a very important impact on the economy. Economists of all stripes agree that lower interest rates boost economic growth and higher rates reduce growth. Some go as far as saying that it is through interest rates and monetary policy (not spending and fiscal policy) that governments should manage the economy. It’s a standard classroom exercise to draw curves showing the impact of interest rates on growth. Too low interest rates are one of the main factors blamed for causing the bubble and resulting recession. But I always felt that something didn’t quite add up and I began to doubt how important interest rates really are.

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This Is Your Brain on Money

Posted in economics by ittecon on October 13, 2014

A young economist  wrote in 1844, “The extent of the power of money is the extent of my power. Money’s properties are my – the possessor’s – properties and essential powers… I am bad, dishonest, unscrupulous, stupid; but money is honoured, and hence its possessor. Money is the supreme good, therefore its possessor is good. Money, besides, saves me the trouble of being dishonest: I am therefore presumed honest. I am  brainless, but money is the  real brain of all things and how then should its possessor be brainless?”

via This Is Your Brain on Money: Why America’s Rich Think Differently Than the Rest of Us | Alternet.

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