If Leon Walras’ auctioneer did his job, running a business would be easier. One might say the U.S. economy ‘is in a dynamic state’ right now. (That’s an old Vietnam War phrase for ‘nobody knows what is going on.’) Rapidly…
U.S. gave the world model for agricultural research
Prices of basic foods like rice and wheat have risen rapidly around the world. This refocuses attention on two related policy questions long thought important but largely ignored recently: Should government fund agricultural research? What should wealthy nations do to…
Sometimes, our money illusions are shocking
I don’t have a Ph.D., so perhaps that is why I occasionally suffer from ‘money delusion.’ But if other average Joes would be shocked by expensive fertilizer, as I recently was, some economic theories are on shaky ground. “Money illusion”…
Only time will tell if commodities riding a bubble
Overbought commodity futures markets may be the next source of excitement for investors and economists. They also may make conditions even more problematic for households. The problem is that no one, even the most experienced and insightful commodity analysts, really…