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Do Monkeys Understand Money?

Psychology Today, by Roy F. Baumeister - When monkeys play, they behave as economists would have humans do - they accept any offer above zero. This means that, although rational (they have more when they leave the game than when they entered), monkeys are not sensitive to issues of fairness. Humans most certainly are. Humans feel all kinds of self-conscious emotions when they receive more than they think they ought to receive. Not always, of course, but it happens.

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Keynes is innocent: the toxic spawn of Bretton Woods was no plan of his

Guardian - As the global financial crisis deepens, the rich nations will be forced to recognise that their problems cannot be solved by tinkering with a system that is constitutionally destined to fail. But to understand why the world economy keeps running into trouble, they first need to understand what was lost in [...]

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Fiscal policy is our most potent instrument

Financial Times - Fiscal policy, more than monetary policy, will determine how and when this crisis will be resolved. The best contribution central banks could make is to help the money markets. I still believe some explicit currency-zone level money market insurance scheme is the way to go. By all means, cut [...]

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Economic Crisis Mounts in Germany

Spiegel - German Chancellor Angela Merkel is putting up a lot of money to try to quiet hysterical markets. At the same time, though, Germany and Europe appear to be sinking quickly into a recession. Experts believe a massive economic stimulus package is needed to stop the slide.

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