Keyword: economic principles

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The CBO

This week’s IGM Economic Experts Panel statements: A) Forecasting the effects of complex legislative actions is hard, so even competent, non-ideological and non-partisan projections could differ substantially from outcomes. B) Adjusting for legal restrictions on what the CBO can assume about future legislation and events, the CBO has historically issued credible forecasts of the effects of both Democratic and Republican legislative proposals.
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Primary Voting

This week's IGM Economic Experts Panel statements: A) There is no perfect voting system. That is, no voting system can ensure that the winner will be the person who best represents voters’ wishes, including how intensely they favor or disfavor each candidate. B) One clear defect of a winner-take-all election with 3 or more candidates, and with each voter choosing only one candidate, is that a candidate who is strongly disliked by a majority, but strongly liked by a minority, can beat a candidate who is liked by a majority and disliked by relatively few.  
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Currency Manipulation

This week’s IGM Economic Experts Panel statements: A) Economic analysis can identify whether countries are using their exchange rates to benefit their own people at the expense of their trading partners’ welfare. B) Bank of Japan monetary policies that result in a weaker yen make Americans generally worse off.
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Nash Equilibrium

This week’s IGM Economic Experts Panel statement: Behavior in many complex and seemingly intractable strategic settings can be understood more clearly by working out what each party in the game will choose to do if they realize that the other parties will be solving the same problem.  This insight has helped us understand behavior as diverse as military conflicts, price setting by competing firms and penalty kicking in soccer.
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Vaccines

This week’s IGM Economic Experts Panel statement: A) Declining to be vaccinated against contagious diseases such as measles imposes costs on other people, which is a negative externality. B) Considering the costs of restricting free choice, and the share of people in the US who choose not to vaccinate their children for measles, the social benefit of mandating measles vaccines for all Americans (except those with compelling medical reasons) would exceed the social cost.