Except for the period 1992-2000, the dollar’s role as an international currency has been slowly declining since 1976. Since 2010, there has been another pause in this decline – somewhat surprising, given that the financial crisis began in the US, and given Congress’ recent flirtations with default. The dollar’s resilience as the world’s reserve currency is due to a lack of good alternatives – the euro has its own problems, and the yuan only accounts for 2.2% of forex transactions.
Academic economists – especially in the US – are continuously evaluated, with salaries and promotions hanging on outcomes. This column argues that the methods – identified from a survey of economics department chairs – are likely to reduce the amount of research created, perpetuate inefficiently sized research teams, promote false authorship, and penalise honest researchers. They also provide departments with excessive leeway to engage in potentially capricious behaviour.
The most popular regulation against child labour is a ban against it. This column presents evidence from such a ban in India. Not only did the ban not reduce child labour, but it even increased it. The effects are concentrated among the poorest families. Therefore, policy reforms other than bans could be more effective in reducing child labour, and in improving the lives of children.
Scrapping subsidies were a popular policy to protect car sales in the beginning of the crisis. This column presents new research showing that the subsidies had a strong effect on stabilising sales, but only a small environmental impact. There may thus be more productive investments to stabilise the economy during times of crisis.
The profound impact of the ICT revolution on the job market have been widely studied, but the effects of different types of technology can be heterogeneous and even contradictory. This column presents evidence that technologies providing access to stored data tend to empower front line workers, while communicative technologies put more power in the hands of managers.
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