Ricardo's threads | Nothing contributes so much to the prosperity and happiness of a country as high profits

They Looted Companies — Now They're Looting the Government

05/12/2025 Ineteconomics Analysis

Economist William Lazonick reveals how the extraction model of American corporations has migrated from business to government.
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Rational inattention during an RCT

05/12/2025 European Central Bank Central banks

We introduce an information provision experiment into a standard dynamic rational inattention model. We derive analytical results about how the treatment effect varies with characteristics of the environment and the individual. We use these results to discuss findings in the empirical literature on information provision experiments that can be explained by rational inattention of survey respondents and what this interpretation implies about behavior outside the survey.

Ever wanted to ditch the 9-to-5 and teach snowsports? We followed people who did it for 10 years

05/08/2025 The Conversation News & Comments

Konstantin Shishkin/ShutterstockWorkplace burnout – a state of emotional, physical, and mental exhaustion – and the COVID pandemic have sparked a rethink of the traditional 9-to-5 job.

It’s been estimated 30% of the Australian workforce is experiencing some degree of burnout, raising serious concerns about the possible impacts on mental health.

Currency Wars, Social Class, and the Republican Dilemma Over Medicaid

05/08/2025 Ineteconomics Analysis

Faced with a shrinking list of options to trim the budget, Republicans are now eyeing Medicaid - but will that fly among Trump supporters?
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Bank Rate reduced to 4.25% - May 2025

05/08/2025 Bank of England Central banks

The Bank of England’s Monetary Policy Committee is responsible for making decisions about Bank Rate.

Bank lending rates and the riskiness of euro area household loans

05/08/2025 European Central Bank Central banks

I assess the impact of the recent hike in bank lending rates on euro area retail borrowers using a novel microsimulation framework that updates household-level data of a recent representative survey with up-to-date macro-financial information. The key novelty is that existing mortgages are gradually repaid, and new ones are extended, a feature necessary for medium-term simulations in a period of sizable credit growth. Since lending rates have increased, debt servicing has become more demanding, and the simulated share of distressed loans has increased.

Tips for starting a business in Canada, according to entrepreneurs who have done it

05/07/2025 The Conversation News & Comments

Each year, about 100,000 small businesses are created in Canada. But what does it actually take to start a business in Canada — not just on paper, but in practice?

Statement on the timing of the Monetary Policy Report and Minutes of the Monetary Policy Committee meeting on Thursday 8 May 2025

05/06/2025 Bank of England Central banks

Statement from the Bank of England

Beware of large shocks! A non-parametric structural inflation model

05/06/2025 European Central Bank Central banks

We propose a novel empirical structural inflation model that captures non-linear shock transmission using a Bayesian machine learning framework that combines VARs with non-linear structural factor models. Unlike traditional linear models, our approach allows for non-linear effects at all impulse response horizons. Identification is achieved via sign, zero, and magnitude restrictions within the factor model. Applying our method to euro area energy shocks, we find that inflation reacts disproportionately to large shocks, while small shocks trigger no significant response.

Distributional and Macroeconomic Effects of Trump 2.0

05/05/2025 Ineteconomics Analysis

The most likely outcome of the second Trump administration is a recession and an exacerbation of inequalities, and a further degradation of the living standards of working and middle-class Americans.
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