Clark Center Forum

by James Heaton and Nicholas Polson Market observers often divide investors into “smart money” and “dumb money.” Our research shows there may be a way to figure out which group you are in. The first place to look is prices… Read article> 

 

By Takeo Hoshi and Anil K Kashyap On May 5, the Tomari nuclear plant in Hokkaido shut down for routine maintenance, leaving Japan with no operating nuclear-power plants. There is a confused debate over what to do next. Prime Minister Yoshihiko Noda has called for restarting the reactors at Ohi plant in Fukui, insisting that […] 

This week’s IGM Economic Experts Panel statement:

If the fiscal changes that are planned under current US law take place next year — including Bush era tax cuts expiring, Medicare payment rates to doctors being cut, the AMT applying to many more taxpayers, and automatic cuts in defense and non-defense discretionary spending kicking in — then US real GDP growth in 2013 will be lower than it would be under the CBO's alternative fiscal scenario, in which the above changes do not occur. 

By Haresh Sapra U.S. and European banking regulators are conducting stress tests to determine whether financial institutions have enough capital to sustain losses as a result of adverse economic conditions. A critical question is whether these results should be made public, and if so, at what level of detail. Read article> 

by Tobias J. Moskowitz Several years after the global financial crisis, the fierce debate over regulation continues to be driven by strong beliefs — largely uninformed ones — rather than hard facts. Some believe more regulation is necessary, others that it would cause the downfall of our markets. No one, however, seems to be talking […] 

This week’s IGM Economic Experts Panel statement:

New technology for fracking natural gas, by lowering energy costs in the United States, will make US industrial firms more cost competitive and thus significantly stimulate the growth of US merchandise exports. 

by Harry L. Davis Much has been written about the qualities of successful leaders. These attributes often seem to float above any specific context, in the same way that a consumer’s preference expressed in a focus group is assumed to be equally present when that person is shopping in a grocery store or preparing a […] 

This week’s IGM Economic Experts Panel statement:

Cuba’s low per-capita income growth — 1.2 percent per year since 1960 —has more to do with Cuba’s own economic policies than with the U.S. embargo on trade and tourism. 

by Reid Hastie As commentators, politicians and academics struggle to make sense of the recent financial crisis and its ramifications, many of their accounts seek to identify a root cause or the “beginning of the story.” Theories abound… Read article>