Financial challenges at the Whyalla steelworks in South Australia have reignited debate about the nation’s steel industry and its future.

Australians should have access to quality steel at competitive prices. The domestic steel production industry employs tens of thousands of people.

Mark Carlson and Mary-Frances StyczynskiThe Federal Reserve’s discount window is a tool that can provide reserves to banks at a rate set by the Federal Reserve, the discount rate. During the past several years, there have been large fluctuations in the level of reserves in the banking system and in the level discount rate relative to other interest rates.

The New York Review

Questions about market power have become salient in macroeconomics. We consider the role of institutional structures in addressing these within a dynamic general equilibrium framework. Standard models account for monopoly profits as a lump-sum transfer to the representative agent. We label this an "incentive leakage," and show this to be a general characteristic of firm-optimal arrangements. We show that shareholder-operated or worker-operated firms that eliminate leakage can generate within-firm incentives that effectively reduce monopoly distortion in equilibrium.