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Jodi Beggs

The Economics of the Olympics...

By July 26, 2012

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In case you haven't been following, the 2012 Summer Olympics officially begin tomorrow, and a few of the soccer matches are already underway.

Despite its busy schedule due to the whole financial crisis thing, Goldman Sachs has had time to put together a nice report on the economics of the Olympics. In addition to the usual topic of what economic impact the Olympics have on host cities (the evidence is mixed, in case you were curious, but the people at Goldman think there will be economic benefits for London), there are a number of other interesting areas of discussion. Some of my favorites:

  • Gold Goes Where Growth Environment Is Best--Using Our GES to Predict Olympic Medals (Who would have thought that richer countries could cultivate better athletes?)
  • The Olympics as a Winning FX Strategy (Who would have thought that the Olympics would stimulate demand for host-country currency?)
  • Impact of Olympics on Stock Markets (The intuition here is a little less clear to me.)

If nothing else, this report provides a source of entertainment during commercials and a fun way to annoy your friends with nerdy Olympic knowledge.

Comments

July 27, 2012 at 9:52 am
(1) Logan says:

Great read. Thanks for sharing.

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