U.S. election news overshadowed an extraordinary announcement by China last week: Its holdings of foreign currencies passed $1 trillion. Much of the hoard consists of U.S. dollars, most of which are lent back to the U.S. government. This unprecedented development…
Is drug-cost bargaining sound policy?
When Congress passed the Medicare Prescription Drug Improvement and Modernization Act in 2003, it specifically banned the Social Security Administration from negotiating preferential prices with drug companies. The new Democratic majority in Congress wants to change that. Indeed, removing that…
It’s hard to put a lid on buyers’ expectations
People’s willingness to buy something today often hinges on what they expect the good to sell for in the future. This is not true for all products — groceries are a notable exception — but it applies to many durable…
Can divided power yield coherent power?
What effects the 2006 landmark election will have on economic policy or the economy are not clear yet. It is evident that divided government will prevail in Minnesota and in Washington, D.C. In both cases, a Republican will head the…