Choose Less, Not Small — Go for Big and Beautiful
Fresh shocks may alter data and parameter estimates, but the core model endures — the hallmark of robust modelling. Nothing is new under the sun; resist the temptation to reinvent from scratch.
Economy
Nippon Steel–U.S. Steel: a national-security compact disguised as a takeover
The comprehensive national-security agreement that cleared the deal, however, shows Washington views it less as foreign direct investment than as a strategic joint venture it can veto at will.
The Two Welfare Theorems: Distribution Through Quantity
The two welfare theorems show that equilibrium implies optimality, and any optimal outcome can be achieved as equilibrium through redistribution. This supports quantity-based policies over price manipulation, yet governments often choose the latter, undermining efficiency.
Models Are Not Random; Residuals Must Be
When decomposing data to explain causality, the key is ensuring $\mathbf{X}'\mathbf{e} = \mathbf{0}$ — no noise in the signal, no signal in the noise. This condition underpins valid statistical inference and model credibility.
Trade War - US Reciprocal Tariff Negotiations with China and Canada Set Deadlines for Agreement
Recent tariff negotiations between the US, China, and Canada show signs of progress. China and the US reached a framework deal with reduced tariffs and export concessions, while US-Canada talks aim to integrate trade with broader security and regulatory cooperation.
Trade Negotiations Enter Critical Phase: Understanding Progress with Japan, UK, and Middle East
US trade talks gain momentum: UK wins tariff reprieves, Japan negotiates with tech leverage, and the UAE pursues a CEPA path amid Middle East tariff tensions.
From Micro to Macro: Long and Short Versions
Macroeconomics builds on micro foundations but isn’t just micro writ large. Modern models, from growth to cycles, require dynamic optimisation and rational expectations—complex tools for a complex economy. Whether AI can break this decades-long mold remains an open question.
Capitalism Triumphs Over Communism: The Proof is Clear
Why does capitalism work? Beyond empirical evidence, this is the formal mathematical proof: if preferences are reflected in prices, the market delivers a globally optimal allocation—no one can gain without someone else losing.
Learning Economics as a Beginner: Understanding Causality
Econometrics isn’t just about proving causality—it’s about approximating truth. Through residual patterns, we test if a model holds. As with physics, it's less about certainty than refining the assumptions.
Trade War | US Debt Market Turmoil: Long-term Bonds Become Investors' "Sell America" Choice, Also Negotiating Chips for China and Japan
US long-term bonds, once seen as safe assets, are now Donald Trump’s Achilles' heel—used as bargaining chips by China and Japan amid trade war tensions, as yields soar and global investors begin to 'Sell America'