Monday, 20 April 2015

Global military spending decline, a note on Crowding In and the Paradox of Thrift and other interesting bits and pieces

military spending
  • Snapshots of Global Military Spending – Since the Great Recession hit, global military spending has dropped a bit (as measured in inflation-adjusted dollars).
  • Crowding In and the Paradox of Thrift – From Paul Krugman’s blog: … these days you can pretty much count on the semiannual World Economic Outlook to offer some dramatic new insight into how the world works. And the latest edition is no exception. The big intellectual news here is Chapter 4, on business investment. As the report notes, weak business investment has been a major reason for global economic weakness. But why is business investment weak? … it manages in passing both to refute a very widely held but false belief about deficits and to confirm a highly controversial Keynesian proposition. The false belief is that government deficits necessarily “crowd out” investment, so that reducing deficits should free up funds that lead to higher investment. Not so, says the IMF: when governments introduce deficit-reduction measures, investment falls instead of rising. This says that the deficits were crowding investment in, not out. And there’s another way to look at it: when governments introduce austerity measures, they are trying to reduce their net borrowing – in effect, they are raising their savings rate. What the IMF tells us is that such attempts to increase saving actually lead to lower, not higher, investment – and since saving equals investment, actual savings fall. So what we have here is an empirical confirmation of the existence of the paradox of thrift! Remarkable stuff.
bouvier's monkey
  • Critically Endangered Monkey Photographed In Congo’s Newest National Park, Ntokou-Pikounda – Two primatologists working in the forests of the Republic of Congo have returned from the field with a noteworthy prize: the first-ever photograph of the Bouvier’s red colobus monkey, a rare primate not seen for more than half a century and suspected to be extinct by some, according to WCS (the Wildlife Conservation Society).
  • Deal Reached on Fast-Track Authority for Obama on Trade Accord – Key congressional leaders agreed on Thursday on legislation to give President Obama special authority to finish negotiating one of the world’s largest trade accords, opening a rare battle that aligns the president with Republicans against a broad coalition of Democrats. In what is sure to be one of the toughest fights of Mr. Obama’s last 19 months in office, the “fast track” bill allowing the White House to pursue its planned Pacific trade deal also heralds a divisive fight within the Democratic Party, one that could spill into the 2016 presidential campaign.
  • Marco Rubio: the 2016 presidential campaign’s $40 million man – “Marco Rubio will have the resources necessary to run a first-class campaign, that’s already been determined,” said billionaire Florida auto dealer Norman Braman, a former Jeb Bush supporter who is now one of Rubio’s highest-silhouette donors.
  • Gazing Into Those Puppy-Dog Eyes May Actually Be Good For You – Gazing into your dog’s eyes apparently triggers happy feelings in both parties – suggesting that dogs really may love us back. … If you’re a dog owner, this question may have crossed your mind. Does she really love me, or is she just looking at me that way to get a treat? New research out this week in the journal Science may provide some clues.
  • What in the world does China own?
Post a Comment