Previous convictions: April 2003
I used to share the physics envy of many economists. The responses to Bjorn Llomborg's book have helped change my mind.
Survival of the fittest not the fattest
The increased concentration of the car industry has been a commonly used, yet increasingly untrue example on the effects of globalisation. There is still an important lesson to learn though.
The real culprits in Europe’s pensions crisis
The problem of the European pension gap cannot be tackled by the kind of financial engineering proposed by the European Financial Services Round Table. This is not the moment in history to argue that private pension funding is necessarily superior to state provision.
Take the politics out of fiscal policy
Even though there is a case for leaving the responsibility of fiscal policy to the government, there is an even greater need for achieving the discipline and the same kind of objective assessment that has worked so well for monetary policy
The high cost of ICI’s fall from grace
The fate of ICI demonstrates how the market disciplines unsuccessful choices of strategy; in the case of ICI it is almost unfortunate that it does so.
The visible hand of the Treasury
The effort to define the 'third way' for the centre left after socialism continues with Gordon Brown's extended essay on economic philosophy to the Social Market Foundation. His analysis has many attractions - and many unresolved problems.
Desperate dons must take risks for bigger rewards
Tony Blair has shown decisive leadership qualities in putting forward necessary but unpopular proposals to restore universities' freedom to set fees. It needs to be matched by similar qualities of leadership in the universities themselves.
A strategy for hedge funds and dangerous drivers
There are business lessons to be drawn from the bad habits of French drivers. We need to beware of activities whose outcomes have a Taleb distribution - many small gains punctuated by occasional large losses.
Weaving the fine fabric of success
From the eighteenth century history of John Kay of Bury and John Kay of Warrington, we learn that creative skills and management skills are very different.
The Gift of the Magi
Not only does O Henry’s The Gift of the Magi tell us about the spirit of Christmas - its handy for economics students as well.