Should spot betting be banned to prevent corruption in sports?: The recent Pakistan tour of England was marred with many spot fixing controversies. While many argue that exposing young sports stars to wealth and glamour is the root cause of corruption in sports. Spot betting, while based on trivial actions in the game that does not affect the outcome of the game, can lead to big earnings for the winners. This can end up getting young players to get sucked into the system. Should spot betting be banned to prev...

Should inflation be kept at an reasonable rate at the expense of growth?: The days of cheap mortgage deals or interest free loans may look like long gone. The prolonged low interest rate led to growth of unsustainable credit boom, leading to higher inflation. When the interest rates were increased, it led to collapse of the housing market and the interest rates are back to near zero levels. The unemployment is still very high for the comfort of governments. Is slightly higher inflation better than lower growth or shoul...

Should valuation of environment be a part of measurement of economic growth?: Should valuation of environment be a part of measurement of economic growth? Is Green GNP a necessity in the modern world? While India and China, the two major economies growing at a rapid rate has helped millions to come out of poverty, it has also impacted the environment in a big way. Mega power plants emitting ash into the environment, thousands of new factories are being built every year, millions of new cars on the road, thousands of miles ...

Why are Economic Instruments considered better than Command and Control instruments for pollution control?: A very important question in environmental economics, this seeks to compare the traditional approach of command and control instruments and the new approach of economic instruments for pollution control. Although the command and control instruments are still widely used in developing countries, more and more countries are now adopting economic instruments. The most sought after example in the economic instruments is the European Union Emission Tr...

In depth analysis of business systems across various countries: While this was a text book for one of my courses during my MBA, once I started reading this, I realised this is much more than just another business school text book. The initial pages on capitalism can be a bit heavy for someone not interested in economics and business, the following chapters on various forms of capitalism across the world should be an eye opener to functioning of the global markets. Ever wondered why certain countries have a ...

Germany vs. US: Two Different Approaches to the Recession-Becker - The Becker-Posner Blog:

In many past commentaries I attacked labor markets in Western Europe as being too rigid regarding layoffs and hires, and for providing too generous unemployment compensation often for very extended periods. That rigidity explained why unemployment rates in the 1990s and the first 6-7 years of this decade were much higher there than in the United States. Responding to the facts of high unemployment and long durations of unemployment, and to critic...

Soap box: Creativity is the future of business success - SME, Business - The Independent:

The economic malaise afflicting business in Britain, and many other parts of the developed world, has catalysed a change in the way that business leaders need to think. Yet it’s one for which few of them are well prepared.

Is increased government spending the only way out of recession?: When the economy goes into recession, thousands of people lose their jobs and also corporate profits decline. This reduces both the income tax and corporation tax flow to the government. Because of high unemployment, there is increased use of government programs such as social security benefits. In this given situation, is it prudent for governments to increase their spending causing the deficit to spiral, thereby affecting the sovereign debt rat...

Better use of huge foreign exchange reserves: Foreign exchange reserves are foreign currency deposits and bonds held by central banks and monetary authorities, but also includes foreign exchange and gold, SDRs and IMF reserve positions. In a flexible exchange rate system, official international reserve assets allow a central bank to purchase the domestic currency to stabilize the value of the domestic currency if need arises. China tops the list with nearly $2.5 trillion, Japan with $ 1 tril...

1929 Stock Market Crash: