America’s Debt-Ceiling Debacle

When Greece’s sovereign-debt crisis threatened the euro’s survival, U.S. officials called their European counterparts to express bewilderment at their inability to resolve the issue. Now, the tables have turned, with American leaders on the receiving end of such calls. The most recent threat of a U.S. debt default has been avoided, but only temporarily. Another battle looms early next year, when the U.S. government’s debt ceiling will have to be raised again. Read more

Measuring Trust in the Financial Sector with the Thomson Reuters TRust Index

Trust is an essential part of a functioning economy, yet it is often one of the least understood variables in economics. That’s why the Institute for New Economic Thinking is supporting the Thomson Reuters TRust index, which provides concrete metrics for understanding the level of trust in the financial system using a benchmark of the top 50 global financial institutions as a proxy for the sector as a whole.  Read more

What does the Canton Fair tell about Chinese economy?

I'd like to do an advertisement at the beginning of this post. Our Shadow PBOC seminar has set up a website: It will not only include long analysis on certain topics of Chinese economy as I have been posting on this blog, but also have shorter but more frequent pieces on interbank market and some smaller events. We are also thinking about filming part of the seminar and the videos will be uploaded on the website as well when we finish doing that. Thank all readers for following this blog and please keep following us at in the future. 

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Economic theory declassified?

So, most Nobel Prize exegetes went a long way, this week, toward explaining that asset pricing is not primarily born out of theoretical reflection but out of prize-deserving empirical work.John Cochrane, for instance, writes about efficient markets that: Read more

Live Stream of "Economics and Theology" Tonight!

A Lecture Series Hosted by The Institute for New Economic Thinking and 
Union Theological Seminary

Tonight, Institute President Robert Johnson and Union President Serene Jones are hosting a conversation with john a. powell.

The conversation will be live streamed. We invite those unable to attend in person to tune in online here. The live-stream will begin at 6:00 pm ET. Read more

What You Can Do to Protect Yourself Against a Totally Unnecessary U.S. Government Default

By Robert Engle and Andrew W. Lo

If Congress and the White House fail to raise the debt ceiling this week and the United States defaults on its debt, what can we expect and how can we protect ourselves against these events? Read more

Lars Peter Hansen of the Institute's HCEO Research Group Wins 2013 Nobel Prize in Economics

The Institute for New Economic Thinking congratulates the winners of the 2013 Nobel Prize in Economics, Eugene Fama, Lars Peter Hansen, and Robert Shiller. Read more

The Political Economy of the Nobel Prize, 45th edition

This morning, when I woke up a few hours before the Nobel announcement, I felt seriously dissatisfied. I had meant to write a post on Thomson Reuters's prediction that Card, Angrist and Krueger may win the Nobel for their work on empirical microeconomics. I thought that such prediction would come true, sooner or later, because of the irresistible development of empirical economics in the past 50 years, one illustrated by the list of John Bates Clark medalists. Such expansion, fostered by the increasing availability of data and computing resources, could itself be recast as part of an even larger move toward making economics an applied science. Read more

What is Economic Success?

By Jeff Althouse, Frederick Heussner, and Nils Rochowicz

“You are now leaving the world as you know it.” Read more