Speculative Bubbles: Good for Innovation?

In a 2009 presentation, IT pioneer Bob Metcalfe argues that Speculative bubbles accelerate technological innovation. So he argues that we should “try not to outlaw bubbles,” but adds the warning that one should Just be sure to have a chair when the music stops. (See Metcalfe’s presentation “Enernet: Internet Lessons for Solving Energy.” I would be hard-pressed [...]

Historical Chart of Home Values Shows Extent of the Housing Bubble

This chart, originally developed by economist Robert J. Schiller, then updated by Steve Barry, shows the recent housing bubble in dramatic fashion. This image is linked from the original at The Big Picture — click through for the original: AB — 15 April 2011

‘American Dream’ Film: Communicating Economic Ideas Dramatically

I’m interested as much in the way ideas get communicated as the ideas themselves. What brings this to mind is the animated film I saw today called The American Dream. This is the most creative expression I’ve seen of the more non-mainstream view of economics — the idea that the Federal Reserve is an evil [...]

Do Companies Really Act in Their Own Interests?

Economics 101 would make one think that all actors always act in their own self-interest and that that is what makes a free-market economy work so well. But deeper economic study helps you to appreciate that the reality is much more nuanced. This is emphasized in posts today by James Kwak at The Baseline Scenario [...]