There are few areas in which real-world economics diverges more from introductory econ theory than in how salaries are determined. That is evident in recent local gossip involving compensation for university presidents, TV anchors and disabled pilots. Go beyond the…
Fed policy can affect elections, but is it intentional?
Congress wrote the Federal Reserve Act to insulate our nation’s monetary policy from political pressure. But it is impossible to do that perfectly. Inevitably, political forces occasionally influence how Fed leaders make policy. And there are at least a few…
Fed policy moving to center stage in presidential race
With Mitt Romney recently opining that any further increases in the money supply would be inflationary, the Federal Reserve and its policies are becoming increasingly visible issues in the 2012 presidential race. Unfortunately, it appears from reader reactions to last…
Scandia gravel pit dispute illustrates importance of rules
Gravel is a humble, low-priced material, but one that modern economies need in large amounts. It can be extracted with far fewer environmental effects than coal or metal ores, but noise and dust problems are common, and a modern gravel…