Finance

Passive Investing

The amount of passively invested funds has reached levels at which it has a measurable detrimental effect on market efficiency.

 
US

Computer Chips

Question A:

Given the centrality of semiconductors to the manufacturing of many products, securing reliable supplies should be a key strategic objective of national policy.

Question B:

Restrictions on exports of semiconductors and related high-tech equipment to China will substantially improve US technological leadership.

 
US

Hurricane Economics

This US survey examines (a) In the aftermath of Hurricane Ian, the level of Florida’s GDP in five years will be substantially lower than it otherwise would; (b) The prospect of further costly extreme weather events means that there is a substantial chance that some private property insurance markets will no longer exist in ten years in states such as Florida; (c) Without large government subsidies, mandated flood insurance requirements would substantially reduce losses from subsequent natural disasters by encouraging economic activity to migrate from the most flood-prone areas 
Articles

Explaining the Rationale for the 2022 Nobel Prize in Economics

The 2022 Nobel Prize in Economic Sciences has been awarded to former Fed Chair Ben Bernanke of the Brookings Institution, Douglas Diamond at Chicago and Philip Dybvig at Washington University in St. Louis “for their research on banks and financial crises”. Anil Kashyap explains the rationale for this recognition. 
Europe

Bankers’ Bonus Cap

This European survey examines (a) The UK’s removal of the cap on bankers' bonuses (introduced by the EU in 2014 and which limits payouts to two times annual base salary) will provide a measurable boost to the country’s economic growth; (b) Removing the cap on bankers' bonuses will measurably enhance the global competitiveness of the UK’s financial services sector; (c) Removing the cap on bankers' bonuses will pose a measurable risk to financial stability in the UK.