Tuesday, October 3, 2023 | 
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Kerk Phillips

A Chinese clerk counts U.S. dollars in exchange for the Chinese renminbi at a bank in Hefei in central China's Anhui province Sunday June 20, 2010. (AP Photo)
Business
Currency crises are almost always a result of inconsistent monetary policy
Currency crises can cause real downturns that last a long time. Most currency crises can be attributed to the central bank attempting to target the exchange rate while simultaneously conducting independent monetary policy, an impossible task.
By Kerk Phillips
Break lights along I-15 between Lehi and University Parkway in Orem.
Business
Are recessions like traffic?
Traffic is stop-and-go when the number of cars per mile of highway gets too large. A working paper by Jennifer La’O of the University of Chicago examines whether a recession can be explained by a similar mechanism.
By Kerk Phillips
This undated photo shows a large manufacturing plant in Cleveland, Ohio.
Utah
The decline of the Rust Belt was inevitable
Since the end of World War II, industrial production in the Rust Belt has declined slowly, but dramatically. This decline was largely driven by the unique technological advantages of firms and relationships with their workers.
By Kerk Phillips
Business
Economic theory uses scientific method
Economics requires theory to form testable hypotheses, and theory often required heavy use of mathematics. Without theory and testable hypotheses, we would be unable to understand the economy.
By Kerk Phillips
Business
Statistical analysis valuable tool in studying the economy
Economics claims to be a social science, but is it really a science? Controlled experiments are often impossible, but statistical tools make it possible for economists to rigorously and objectively examine data.
By Kerk Phillips
A Jeep Cherokee turned in during the Cash for Clunkers program is seen at the Riverside Auto Mall, Saturday, Sept. 12, 2009 in Marquette, Mich.
Business
Electric cars: Are there lower-cost methods of reducing carbon emissions?
Buying an electric car reduces carbon emissions in the long-run, but there are significantly lower-cost methods of reducing carbon emissions.
By Kerk Phillips
"The National Debt Clock " is displayed on the side of a building near an Internal Revenue Service office in New York, U.S., on Thursday, July 14, 2011.
Business
Balancing the federal budget hard in the short run; policies will be key
Balancing the budget is very hard in the short run. The keys to a restoration of sound fiscal policy are to adopt policies that encourage more rapid growth of the economy and put meaningful and enforceable caps on expenditures.
By Kerk Phillips
The negative income tax gives taxpayers a refundable tax credit and couples this with a constant marginal tax rate or “flat tax.”
Business
A flat tax is not incapable of funding the government and the poor
Tax season will soon be upon us. Wouldn’t it be nice if filing taxes was not such a long, drawn-out process?
By Kerk Phillips
A sign for KeyArena appears near the Space Needle, Monday, Jan. 21, 2013, in Seattle. KeyArena would host NBA basketball games for two seasons if a team returns to Seattle as was reported likely on Monday, while a new permanent facility is built south of
Business
High tax rates can bring in less money
Taxes are in the news lately. French film star, Gerard Depardieu announced in December he would be moving from France to neighboring Belgium to avoid an increase in taxes.
By Kerk Phillips
Business
Despite missing the fiscal cliff, we still have a huge fiscal gap
So we avoided the fiscal cliff. Forgive me if I am less than impressed with our political leaders.
By Kerk Phillips
The fountain of the Wynn Macau casino performs celebrating it's opening with the backgroung of the Lisboa Casino in Macau, Tuesday, Sept. 5, 2006. American gaming mogul Stephen Wynn was ready to throw open the doors of his new US$1.2 billion casino to gam
Is buying risky financial assets a form of gambling?
Recently the U.S. Commodity Futures Trading Commission issued a complaint against the online prediction market firm Intrade.
By Kerk Phillips
An beachside house deemed uninhabitable by the New York City Department of Buildings is shown in the Belle Harbor neighborhood of the Rockaways, Monday, Nov. 19, 2012, in New York. (AP Photo/Kathy Willens)
Business
Even economically, disasters like Hurricane Sandy are bad things
Every time there is a significant natural disaster, I eventually — and unfortunately — hear from someone that there is at least one upside: the disaster will be good for the economy. And every time I respond, “Wrong!”
By Kerk Phillips
A Chinese clerk counts U.S. dollars in exchange for the Chinese renminbi at a bank in Hefei in central China's Anhui province Sunday June 20, 2010. China's central bank said Sunday it would maintain a stable exchange rate and didn't anticipate major chang
Business
Richard W. Evans: Punishing China for currency manipulation could hurt the U.S.
A common theme this election cycle and over the last four years has been Chinese currency manipulation
By Richard W. Evans and Kerk Phillips
Federal Reserve Chairman Ben Bernanke speaks during a news conference in Washington, Thursday, Sept. 13, 2012, following the Federal Open Market Committee meeting to present the FOMC's current economic projections and to provide additional context for the
Business
When the U.S. creates lots of money, it’s just like taxation
As many observers expected, the U.S. Federal Reserve began a new round of quantitative easing this fall in an attempt to stimulate the economy by increasing the supply of available money.
By Kerk Phillips
The decisions investors make depend on how averse to risk they are and on how high the returns of the assets are relative to their risk.
Business
Financial theory and the Fremont People
A modern investor takes a pool of money and optimally distributes these funds over a set of investment assets. Some of these assets are very safe, and have low rates of return. Others are risky, but compensate for this risk by offering higher payoffs. The decisions investors make depend on how averse to risk they are and on how high the returns of the assets are relative to their risk.
By Kerk Phillips
Business
Trying to use prediction markets to forecast the presidential election
You may have noticed there is a presidential election coming up. The Republican Party met this past week in Tampa, Florida and officially nominated Mitt Romney as their candidate. Democrats are meeting this week in Charlotte, North Carolina to renominate President Barack Obama. Of course all that really matters is the counting of electoral college votes, and those will be decided on November 6th.
By Kerk Phillips
Business
Higher minimum wage may not be good thing
The current federal minimum wage is $7.25 per hour. For an employee working 40 hours per week for 52 weeks, that amounts to an annual before-tax income of $15,080.
By Kerk Phillips
Business
Will a third quantitative easing by the Fed really be helpful?
By Kerk Phillips
Will the Social Security program exist to help future generations?
Business
There is no easy way to fix Social Security system
The U.S Social Security system is in big trouble.
By Kerk Phillips
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Business
We need a market neither pro-business nor pro-labor
In a campaign speech, President Barack Obama noted that Mitt Romney “has a theory of the economy that basically says, if I’m maximizing returns for my investors, for wealthy individuals like myself, then everybody’s going to be better of
By Kerk Phillips
In this June 1, 2010 file photo, a woman hangs onto her shopping bags while exiting the Neiman Marcus store at Union Square in San Francisco.
Business
Self consumption is considered greedy, but Robin Hood is altruistic
Greed in and of itself is not a problem if markets are competitive. It is only when monopoly power can be imposed that economic inefficiencies arise.
By Kerk Phillips
Business
Economic recovery is inevitable, but better policies influence it
The U.S. economy has been through several rough years, beginning with a severe recession in 2008 and an anemic recovery since. The economy has actually been growing since June 2009, but it hasn’t felt like it to many Americans.
By Kerk Phillips
In this Feb. 11, 2005 file photo, trays of printed social security checks wait to be mailed from the U.S. Treasury\'s Financial Management services facility in Philadelphia.
Business
Social Security is in trouble
Social Security is in trouble. While the system is currently generating tax revenue that is approximately equal to the benefit payouts, this will not be the case in the near future. Many state and local pension funds are in a similar situation.
By Kerk Phillips
Senate Budget Committee Chairman Kent Conrad (D-ND) talks with reporters about the economic stimulus legislation in the U.S. Capitol February 6, 2009 in Washington, DC. Senators from opposing parties are working on a compromise to the economic stimulus le
Business
Did the 2009 stimulus package work?
Congress passed the American Recovery and Reinvestment Act in February of 2009. But did it do its job?
By Kerk Phillips
Business
Financial markets accomplish a variety of objectives
In terms of public opinion, the past couple of years have not been kind to people who work in financial markets.
By Kerk Phillips
A woman reads an extra issue of a Japanese newspaper at Ginza district in Tokyo Monday, Dec. 19, 2011. The paper reports Kim, North Korea's mercurial and enigmatic longtime leader, has died of heart failure. He was 69.
Business
North Korea has a long road ahead to economic recovery
Kim Jung Il, the ruler of North Korea, died almost two weeks ago, reportedly of a massive stroke. He will be missed by no one.
By Kerk Phillips