Business Economics articles from January 2003

Business Economics archives from January 2003

From the editor.(Editorial)
January 1, 2003... In This Issue It was not really planned this way, but this issue has an especially heavy emphasis on banking and finance. It leads off with Harvey Rosenblum's NABE presidential address on what his career as a central banker has taught him...

Understanding inflation: lessons from my central banking career; the main lesson is that inflation is still a mystery.
January 1, 2003... Economic theory--much less modeling based on historical data--has a difficult time keeping up with structural change in the contemporary economy. Anecdotal evidence and a feel for the economy based on experience are likely to be as important as...

The use of economic analysis to affect public economic policy: the case of the Shadow Financial Regulatory Committee.
January 1, 2003... Promotion of sound economic policy is frustrating, not so much because policy-makers do not understand its value but because its value is realized over the long run; and policy-makers have short-run perspectives. Crises, however, give rise to...

What economic principles should policymakers in other countries have learned from the S&L mess? Appropriate incentives for government supervisors are critical for avoidance of financial crises.(savings and loan)
January 1, 2003... For individual institutions' insolvencies to trigger a national financial crisis, cumulative losses across an important industry sector must exceed the safety-net support that creditors expect the government to provide. This happens when...

How much regulation of financial services do we really need? Much of the rationale for regulating financial services is weak, but some regulation will always be necessary.
January 1, 2003... Market solutions in the financial services market, as in the rest of the economy, are preferable to government solutions. When firms fail, there rarely is any reason for taxpayers to pick up the tab. Banks, however, are treated differently....

Strengthening the global economy: a report on the Bush Administration agenda; a focus on raising productivity growth and increasing economic stability.
January 1, 2003... The Bush Administrations international economic agenda emphasizes increased economic growth and improved economic stability throughout the world. However, effective international policy begins at home, and the macroeconomic policies are in...

A Critique of sovereign bankruptcy initiatives: the IMF and G7 should curb financial assistance to countries in trouble.
January 1, 2003... Top International Monetary Fund (IMF) and U.S. Treasury officials have put forth proposals designed to make it eventually easier for governments and bondholders to go through a debt-workout process. Their intent is to enable the C7 governments...

Assessing the term structure of expected inflation using treasury inflation--protected securities: near real-time measures for those who need quick estimates.
January 1, 2003... With the 1997 introduction of Treasury Inflation-Protected Securities, or TIPS, the calculation of market-based inflation expectations became possible. With the passage of time and the issuance of successive securities, it also became possible...

Impact of macro shocks and utility restructuring on energy markets. (Focus on Industries and Markets).
January 1, 2003... Over the past two years external shocks have had a significant impact on electricity markets. Electric utility restructuring was proceeding at a very rapid pace in the late 1990s, and there was every expectation that this pace would accelerate...

Benefits from eliminating the double-taxation of dividends. (Forum on Emerging Issues).
January 1, 2003... Until recently, simply owning stocks returned sixteen percent annually, investors cared little about dividends, and many companies avoided issuing them. The irregular slide in the dividend-payout ratio from fifty-five percent to sixty percent...

The Art of War 3: The Canons of Commerce. (Book Reviews).(Book Review)
January 1, 2003... By Sun-Tzu Wu David I. Goldenberg. 2002. Bloomington, IN: 1stBooks Library. Pp. 119. $10.50 paperback. The genesis of this little book is the writings of Chinese General SunTzu in 514 B.C. on the subject of strategic management as applied...

Handbook of Investment research--economic and financial indicators as market movers. (Book Reviews).(Book Review)
January 1, 2003... By Conrad Mattern. 2002. Hampshire and New York, NY Palgrave Macmillan. Pp. 464. $80.00 hardcover. This book provides a comprehensive overview and detailed interpretation of economic indicators in both the United States and the Euro Zone....