27 replies on “The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2012: Alvin E. Roth, Lloyd S. Shapley”
Roth’s work should be used in Irish economic policy directly. His research group’s blog is below. Many applications of his insights and technical know-how across health, education, labour markets and so on. It is a good example of economics providing real-world usable science. It is a good choice by the Nobel committee.
Now Roth and Shapley! More to learn – will this crisis never end? Doesn’t look like it … the age of continuous crisis, chassis, and the elusiveness of common sense …
still, if Liam Delaney is getting excited and dancing a jig in Striling something must be happening (-;
Now, where were we with the ontologically challenged …?
fyi
IMF Survey: Eurozone: Carrying Out Agreed Policies Can Help Restore Confidence Europe remains the focus of efforts to restore confidence and revive the global economic recovery. In an interview, Director of the IMF’s European Department Reza Moghadam discusses the pressing challenges facing the euro area and outlines the Fund’s broader role in the region.
Nobel Peace Prize
Oslo’s call to Europe
15 October 2012 La Repubblica Rome
The Nobel Peace Prize awarded to the EU is a double appeal, writes German philosopher Jürgen Habermas: to European leaders to save a Union that has broken down; and to its citizens, to show solidarity just as the crisis is undermining the European social model.
Iberian Pain Only Getting Worse as Spanish Population Falls, Portugal Goes All in For More Failed Austerity
Yves here. Wolf Richter’s latest post may seem a bit breathless, but my assumption is that this rhetorical choice is an effort to try to penetrate Eurocrisis fatigue. The continuing decay, the ongoing last minute patch-ups, the Punch and Judy show between Germany and anyone who dares say anything bad about its perverse creditor moralism, is feeling so stale that it’s easy to tune out.
10/16/2012
New Powers for Brussels
Germany’s Schäuble Presents Master Plan for Euro
German Finance Minister Wolfgang Schäuble is determined to end the euro crisis once and for all. On Sunday he effectively ruled out a Greek bankruptcy, and is now proposing far-reaching reforms to stabilize the currency union. Under his plan, Brussels would be granted far greater powers over national budgets.
Capital must be destroyed in order for liquidity to be usefully deployed once again — especially if it is to deliver investment returns.
Hence, why wars are so hugely useful for dealing with economic depressions. They permanently and effectively destroy capacity. Not just the surplus capacity that plagues the system, but core capacity, which serves a genuine economic need. Indeed, it’s the need for the capacity to be reinstalled that in many ways justifies a return on investment again.
@David O’Donnell
re “Germany’s Schäuble Presents Master Plan for Euro”
Der Spiegel is doing itself no favours is headlining such inconsequential rubbish from Schaeuble as a ‘master plan’ for anything. It is not even at the level of rearranging deckchairs.
Schaeuble is now the biggest obstacle in Europe to the resolution of the crisis.
A crisis that is now not just a euro crisis. It is a political crisis, a social crisis, an unemployment crisis, a trade balance crisis, an idealogical crisis and above all a moral crisis. One thing that it is not is a debt crisis.
Why for instance can Japan have a 200% Debt/GDP level but Europe has a self imposed debt ration of 60%?
If Germany or the German doctrine remains dominant in the EZ, then the Euro will will disappear. Indeed, given the destruction that it has caused, that would be a welcome outcome.
@Seafoid
Good article (FT Alphaville). Negative returns on deposits etc -5% should do nicely. He has a good point. The ‘high hanging’ fruit will have to be dislodged or else the tree will have to be toppled.
PS. You may not have heard of the new ash tree disease that we ‘imported’ from Europe. Believe it not, RTE reported that we import 90% (ninety) of the ash trees required to make hurleys!! Scarcely believable.
The top man in Coillte was one of the last ‘Semi-State’ to concede a cut in his mega remuneration.
Mega remuneration for running managing approx 11% of the land of the country and failing to grow enough ash tress to supply Kilkenny with hurleys.
Despair is only word that comes to mind.
@Joseph Ryan
Schaeuble is now the biggest obstacle in Europe to the resolution of the crisis.
A crisis that is now not just a euro crisis. It is a political crisis, a social crisis, an unemployment crisis, a trade balance crisis, an idealogical crisis and above all a moral crisis. One thing that it is not is a debt crisis.
Why for instance can Japan have a 200% Debt/GDP level but Europe has a self imposed debt ration of 60%?
Most of those outside the crack “ever closer union” suicide squad would like a way to unwind EMU (and allow Germany to happily pursue its “sound money” obsession in splendid isolation) but it would be such ad admittance of failure and incompetence that there is now no way the EU elite could stomach it.
That is why the best hope for the EU and Ireland in particular, now as at the beginning of European component of the global financial crisis, is that the banking crisis escalates to the point debt has to be monetized and the ECB made fit for purpose or EMU disintegrates. Either works.
Since this seems to be the open thread by default can I say how depressing it is to see the plans for the privatization of the Irish National Lottery?
The National Lottery already functions as a regressive “tax on despair” paid disproportionately by those in worse financial situations as a possible escape route from the misery of the poverty trap and now we plan to operate the damned thing for profit.
Shameful almost beyond description, and being done by a Labour party minister.
@seafoid
Agree – question is how? Far too much of this internal derivative cloned within fiinancial system dodgy stuff around and toxic to the lifeworlds of the human race …. figuring out how to lop most of it off wiithout a war would be neat … or Shay’s big load of dodgy derivatives hitting the fan around Frankfurt …..
@Joe Ryan
I use Spiegel International as a useful barometer of ‘reasonably informed’ deutsche opinion. Interesting contrast beween Hollande and Schäuble on ‘integration’ … which must arrive anyway in some shape or form – Banking First for all banks would do me ….
@ALL
HUNGER REPORT AVAILABLE HERE
A new report is out – Constructing a Food Poverty Indicator for Ireland. It estimates that one in ten people experienced ‘food poverty’ in 2010. In other words, hunger. I know the phrase ‘must-read’ is sometimes over-used, but this is truly a must-read report. The very idea that one-in-ten of our neighbours suffer from food poverty is truly frightening. Maybe you won’t be guaranteed a job, maybe you won’t be guaranteed free medical care regardless of your need, but surely in a civilised society we can ensure that no one goes without food. That we can’t, that we don’t, says something about the kind of society that is being created for us.
This estimate produced by Caroline Carney (General Council of the Bar of England and Wales) and Bertrand Maître (ESRI) is based on a careful methodology. It uses deprivation indicators that relate to food in the EU’s Survey of Income and Living Conditions:
•Inability to afford a meal with meat or vegetarian equivalent every second day
•Inability to afford a roast or vegetarian equivalent once a week
•Whether during the last fortnight, there was at least one day (i.e. from getting up to going to bed) when the respondent did not have a substantial meal due to lack of money
“We could have dispersed the Greek debt two years ago and say we’ll share the debt among the different countries of Europe and that would have been it. You only lose once, and not even lose. But right now you’ve lost so many times. We could have already started the recovery phase and avoided the contagion. But we didn’t do that, we said we should not restructure, we should not touch.
Press Review from Berlin on Herr Schäuble proposals on ‘integration’ ….
10/17/2012
The World from Berlin
Schäuble Plan ‘Would Fundmentally Change Euro Zone’
Days ahead of a European Union summit, Wolfgang Schäuble is pushing for Brussels to be given greater oversight and power over budgets of euro-zone countries. German editorialists say the finance minister’s proposal has little hope of success.
Euro Exit by Southern Nations Could Cost 17 Trillion Euros
A new study by a German think tank warns that a euro exit by Greece, Spain, Portugal and Italy would cut global GDP by 17 trillion euros and plunge the world into recession, with France suffering the biggest loss. A Greek exit alone would be manageable, but must be avoided to forestall a domino effect, it says.
27 replies on “The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2012: Alvin E. Roth, Lloyd S. Shapley”
Roth’s work should be used in Irish economic policy directly. His research group’s blog is below. Many applications of his insights and technical know-how across health, education, labour markets and so on. It is a good example of economics providing real-world usable science. It is a good choice by the Nobel committee.
http://marketdesigner.blogspot.co.uk/
Some great articles in the FT today on similar topics by Davies, Buiter and Summers. Any chance we could get a separate thread on them?
FT article on the Kidney Exchange
http://on.ft.com/RwuqXC
Roth’s paper on repugnance below.
http://kuznets.fas.harvard.edu/~aroth/papers/Repugnance.pdf
His google-scholar page below
http://scholar.google.com/citations?user=C3HHY7oAAAAJ&hl=en
Good link on Harvard webpage to Roth and Sotomayor’s chapter on two-side matching
http://kuznets.fas.harvard.edu/~aroth/papers/92_HGT_Two-SidedMatching.pdf
Now Roth and Shapley! More to learn – will this crisis never end? Doesn’t look like it … the age of continuous crisis, chassis, and the elusiveness of common sense …
still, if Liam Delaney is getting excited and dancing a jig in Striling something must be happening (-;
Now, where were we with the ontologically challenged …?
fyi
IMF Survey: Eurozone: Carrying Out Agreed Policies Can Help Restore Confidence Europe remains the focus of efforts to restore confidence and revive the global economic recovery. In an interview, Director of the IMF’s European Department Reza Moghadam discusses the pressing challenges facing the euro area and outlines the Fund’s broader role in the region.
http://www.imf.org/external/pubs/ft/survey/so/2012/car101412a.htm
More comments perhaps than I should but Alex Tabarrok gives a very concise and readable account of the work that won the award
http://marginalrevolution.com/marginalrevolution/2012/10/noble-matching.html
Back to the Peace Prize and Political Economy
Nobel Peace Prize
Oslo’s call to Europe
15 October 2012 La Repubblica Rome
The Nobel Peace Prize awarded to the EU is a double appeal, writes German philosopher Jürgen Habermas: to European leaders to save a Union that has broken down; and to its citizens, to show solidarity just as the crisis is undermining the European social model.
http://www.presseurop.eu/en/content/article/2875321-oslo-s-call-europe
CARTOON OF THE DAY
Nobel Peace Prize
The wrong Nobel
15 October 2012 Le Temps Geneva
http://www.presseurop.eu/en/content/cartoon/2875521-wrong-nobel
Nite.
fyi
IMF ambulance too late for Portugese suicide
http://www.macrobusiness.com.au/2012/10/imf-ambulance-too-late-for-portugese-suicide/
fyi
Tuesday, October 16, 2012
Iberian Pain Only Getting Worse as Spanish Population Falls, Portugal Goes All in For More Failed Austerity
Yves here. Wolf Richter’s latest post may seem a bit breathless, but my assumption is that this rhetorical choice is an effort to try to penetrate Eurocrisis fatigue. The continuing decay, the ongoing last minute patch-ups, the Punch and Judy show between Germany and anyone who dares say anything bad about its perverse creditor moralism, is feeling so stale that it’s easy to tune out.
http://www.nakedcapitalism.com/2012/10/iberian-pain-only-getting-worse-as-spanish-population-falls-portugal-goes-all-in-for-more-failed-austerity.html
CARTOON OF THE DAY
European Union
The great plunge
16 October 2012 Expresso Lisbon
http://www.presseurop.eu/en/content/cartoon/2882421-great-plunge
10/16/2012
New Powers for Brussels
Germany’s Schäuble Presents Master Plan for Euro
German Finance Minister Wolfgang Schäuble is determined to end the euro crisis once and for all. On Sunday he effectively ruled out a Greek bankruptcy, and is now proposing far-reaching reforms to stabilize the currency union. Under his plan, Brussels would be granted far greater powers over national budgets.
http://www.spiegel.de/international/europe/schaeuble-presents-euro-reforms-and-broad-new-powers-for-eu-a-861529.html
Nite!
Lloyd Shapley says he never ever took a course in economics!
Hollande says recession is as dangerous as debt
http://www.guardian.co.uk/world/2012/oct/17/francois-hollande-angela-merkel-austerity
Blind Biddy saya: Depression is more dangerous than Debt.
I think the blog might benefit from some sort of weekly open thread (or even two – “current affairs” and “groundless speculation”).
@DoD
Sooner or later we may have to think about capital destruction . Ideally without WW3.
http://ftalphaville.ft.com/2012/07/10/1078071/the-negative-fear-bubble/
Capital must be destroyed in order for liquidity to be usefully deployed once again — especially if it is to deliver investment returns.
Hence, why wars are so hugely useful for dealing with economic depressions. They permanently and effectively destroy capacity. Not just the surplus capacity that plagues the system, but core capacity, which serves a genuine economic need. Indeed, it’s the need for the capacity to be reinstalled that in many ways justifies a return on investment again.
@David O’Donnell
re “Germany’s Schäuble Presents Master Plan for Euro”
Der Spiegel is doing itself no favours is headlining such inconsequential rubbish from Schaeuble as a ‘master plan’ for anything. It is not even at the level of rearranging deckchairs.
Schaeuble is now the biggest obstacle in Europe to the resolution of the crisis.
A crisis that is now not just a euro crisis. It is a political crisis, a social crisis, an unemployment crisis, a trade balance crisis, an idealogical crisis and above all a moral crisis. One thing that it is not is a debt crisis.
Why for instance can Japan have a 200% Debt/GDP level but Europe has a self imposed debt ration of 60%?
If Germany or the German doctrine remains dominant in the EZ, then the Euro will will disappear. Indeed, given the destruction that it has caused, that would be a welcome outcome.
@Seafoid
Good article (FT Alphaville). Negative returns on deposits etc -5% should do nicely. He has a good point. The ‘high hanging’ fruit will have to be dislodged or else the tree will have to be toppled.
PS. You may not have heard of the new ash tree disease that we ‘imported’ from Europe. Believe it not, RTE reported that we import 90% (ninety) of the ash trees required to make hurleys!! Scarcely believable.
The top man in Coillte was one of the last ‘Semi-State’ to concede a cut in his mega remuneration.
Mega remuneration for running managing approx 11% of the land of the country and failing to grow enough ash tress to supply Kilkenny with hurleys.
Despair is only word that comes to mind.
@Joseph Ryan
Most of those outside the crack “ever closer union” suicide squad would like a way to unwind EMU (and allow Germany to happily pursue its “sound money” obsession in splendid isolation) but it would be such ad admittance of failure and incompetence that there is now no way the EU elite could stomach it.
That is why the best hope for the EU and Ireland in particular, now as at the beginning of European component of the global financial crisis, is that the banking crisis escalates to the point debt has to be monetized and the ECB made fit for purpose or EMU disintegrates. Either works.
Since this seems to be the open thread by default can I say how depressing it is to see the plans for the privatization of the Irish National Lottery?
http://www.reuters.com/article/2012/10/16/ireland-lottery-licence-idUSL5E8LGOIP20121016
The National Lottery already functions as a regressive “tax on despair” paid disproportionately by those in worse financial situations as a possible escape route from the misery of the poverty trap and now we plan to operate the damned thing for profit.
Shameful almost beyond description, and being done by a Labour party minister.
@seafoid
Agree – question is how? Far too much of this internal derivative cloned within fiinancial system dodgy stuff around and toxic to the lifeworlds of the human race …. figuring out how to lop most of it off wiithout a war would be neat … or Shay’s big load of dodgy derivatives hitting the fan around Frankfurt …..
@Joe Ryan
I use Spiegel International as a useful barometer of ‘reasonably informed’ deutsche opinion. Interesting contrast beween Hollande and Schäuble on ‘integration’ … which must arrive anyway in some shape or form – Banking First for all banks would do me ….
@ALL
HUNGER REPORT AVAILABLE HERE
A new report is out – Constructing a Food Poverty Indicator for Ireland. It estimates that one in ten people experienced ‘food poverty’ in 2010. In other words, hunger. I know the phrase ‘must-read’ is sometimes over-used, but this is truly a must-read report. The very idea that one-in-ten of our neighbours suffer from food poverty is truly frightening. Maybe you won’t be guaranteed a job, maybe you won’t be guaranteed free medical care regardless of your need, but surely in a civilised society we can ensure that no one goes without food. That we can’t, that we don’t, says something about the kind of society that is being created for us.
This estimate produced by Caroline Carney (General Council of the Bar of England and Wales) and Bertrand Maître (ESRI) is based on a careful methodology. It uses deprivation indicators that relate to food in the EU’s Survey of Income and Living Conditions:
•Inability to afford a meal with meat or vegetarian equivalent every second day
•Inability to afford a roast or vegetarian equivalent once a week
•Whether during the last fortnight, there was at least one day (i.e. from getting up to going to bed) when the respondent did not have a substantial meal due to lack of money
http://www.irishleftreview.org/2012/10/17/called-hunger/
@ JR
Bad debt in the system is like food poisoning
http://www.haaretz.com/news/features/oecd-to-israel-put-on-your-raincoats-and-tie-yourself-to-the-mast.premium-1.435504
“We could have dispersed the Greek debt two years ago and say we’ll share the debt among the different countries of Europe and that would have been it. You only lose once, and not even lose. But right now you’ve lost so many times. We could have already started the recovery phase and avoided the contagion. But we didn’t do that, we said we should not restructure, we should not touch.
Press Review from Berlin on Herr Schäuble proposals on ‘integration’ ….
10/17/2012
The World from Berlin
Schäuble Plan ‘Would Fundmentally Change Euro Zone’
Days ahead of a European Union summit, Wolfgang Schäuble is pushing for Brussels to be given greater oversight and power over budgets of euro-zone countries. German editorialists say the finance minister’s proposal has little hope of success.
http://www.spiegel.de/international/europe/german-press-review-of-new-berlin-reform-plans-for-euro-zone-a-861799.html
fyi
‘Devastating Impact’
Euro Exit by Southern Nations Could Cost 17 Trillion Euros
A new study by a German think tank warns that a euro exit by Greece, Spain, Portugal and Italy would cut global GDP by 17 trillion euros and plunge the world into recession, with France suffering the biggest loss. A Greek exit alone would be manageable, but must be avoided to forestall a domino effect, it says.
http://www.spiegel.de/international/europe/study-warns-euro-exit-of-southern-nations-could-cost-17-trillion-euros-a-861775.html