Articles Index
What is Arbitrage?
Article answers the following question: What is arbitrage? What markets do arbitrageurs usually trade on? The answers to your arbitrage questions right here.
The Neoclassical Growth Model and Global Poverty
The Neoclassical Growth Model and Global Poverty. The essay is David Stone's entry for The 2004 Moffatt Prize in Economics.
The Bretton Woods System
An examination of the Bretton Woods system.
Why A Shrinking Trade Deficit Will Drive Down the U.S. Dollar
"Why A Shrinking Trade Deficit Will Drive Down the U.S. Dollar" examines why recent comments by Alan Greenspan about the future of the U.S. Trade Deficit drove down the value of the U.S. Dollar.
Democracy and Development in Ghana: A Look at Eight Years of NDC Rule
Democracy and Development in Ghana: A Look at Eight Years of NDC Rule
The Logic of Collective Action
Why do so many government policies make such little economic sense? The best answer I've seen to this question comes from The Logic of Collective Action. Mancur Olson's The Logic of Collective Action explains why some groups are able to have a larger influence on government policy than others.
Why Study Economics?
A reader asks: "Perhaps this is an unusual request. My daughter just completed first year of A levels. She will go for an Economics degree next year. She is required to make a write up and to answer interview questions on this write up as to why she wants to study Economics." In Why Study Economics? we discuss various reasons why someone would want to study economics.
A Letter on the Softwood Lumber Dispute
A Letter on the Softwood Lumber Dispute
A Green Stimulus Plan to Improve the Environment and the Economy
How a change in taxes can stimulate the economy and improve the environment.
The American Dollar and the World Economy
A look at the role the U.S. Dollar plays on the world stage.
What Happens if Nominal Interest Rates Go To Zero?
Can nominal interest rates go to zero? Could they even be negative? I've heard that this has happened before. What would cause something like that to happen and what impact would it have on the economy?
What's the Difference Between Nominal and Real?
Nominal vs. Real Question Answered: I'm learning economics and I keep hearing the terms nominal and real all the time to describe things like interes rates. What's the difference between nominal and real?
Does a Currency Depreciation Cause a Worsening of a Country's Balance of Trade?
An entry for the 2005 Moffatt Prize in Economics which asks the question "Does a Currency Depreciation Cause a Worsening of a Country's Balance of Trade?"
A Student's Guide to the Great Depression
An examination of the Great Depression aimed towards students.
Yet Another FairTax Letter
Another response to "FairTax - Income Taxes vs. Sales Taxes"
The Global Economy: Survey of the United States, Japan and European Union
Recent Developments in the Global Economy: Survey of the United States, Japan and European Union. The essay is David Stone's entry for The 2004 Moffatt Prize in Economics.
Why Don't Prices Decline During A Recession?
When there is an economic expansion, demand seems to outpace supply, particularly for goods and services that take time and major capital to increase supply. As a result, prices generally rise (or there is at least price pressure). We look at why deflation does generally not occur during a recession.
The Executive's Local Constituencies
The Executive's Local Constituencies
The Softwood Lumber Dispute
The softwood lumber dispute is actually a number of disputes which have gone on for over 20 years between the United States and Canada. The heart of the softwood lumber dispute is the claim of the United States that Canada is unfairly subsidizing Canadian lumber production.
Why Are Tariffs Preferable to Quotas?
In this article we look at why tariffs are often preferred to import quotas. There's a few reasons why tariffs are more desirable than quotas.
A Beginner's Guide to Economic Indicators
I'm constantly hearing about economic indicators in the news, but I'm never sure what they're talking about. What are economic indicators and why are they important?
Is Economics Autistic? Can it be Reformed?
If we want economics to be more useful, that is to create more models which accurately describe "real world" phenomena, then we must use more accurate assumptions. There are quite a few costs in doing so, however. First economists would need to spend more time on the "front-end" of their research, that is, they would need to spend more time out in the field in order to create a set of assumptions which more adequately describe reality.
Choosing a Graduate School in Economics
I am an MSc student in economics and I want to pursue a Ph.D. in economics in the United States. I want to follow a career in macroeconomics and econometrics. Can you recommend good pre-Ph.D. books and a good graduate college? How do I pick a graduate school in economics?
Tariffs - The Economic Effect of Tariffs
In my article "The Softwood Lumber Dispute" we saw an example of a tariff placed on a foreign good. A tariff is simply a tax or duty placed on an imported good by a domestic government. Tariffs are usually levied as a percentage of the declared value of the good, similar to a sales tax.
Should Governments Legalize and Tax Marijuana?
The war on drugs is an expensive battle, as a great deal of resources go into catching those who buy or sell illegal drugs on the black market, prosecuting them in court, and housing them in jail. In a recent study for the Fraser Institute, Economist Stephen T. Easton attempted to calculate how much tax revenue the Canadian government could gain by legalizing marijuana.