Games theory of a different sort

Would you rather take Eco 201 this way? (Hat tip to Marginal Revolution via Jared Barton)

Peace and economics

Muhammed Yunnus won the Nobel Peace Prize for the financial innovations embodied in the Grameen Bank.

Mr Yunus, an economist, founded the bank, which is one of the pioneers of micro-credit lending schemes for the poor, especially women, in Bangladesh. ...

Mr Yunus set up the bank in 1976 with just $27 from his own pocket. Thirty years on, the bank has 6.6 million borrowers, of which 97% are women, according to the Grameen website.

There is a nice introduction to the notion of microfinance here.

Rates up, rates down?

We must be near some switchpoint. Two Fed president's voice different concerns about the near term future of the economy.cvxtv

An oil price primer

Here is a short interview with Stephen Brown, the director of energy economics at the Dallas Fed, on the recent movements in oil prices.

A Nobel defense of capitalism

Edmund Phelps describes and defends capitalism. Phelps focuses on the role of capitalism, and economic organization more generally, in nuturing change. He writes

The American and Continental systems are not operationally equivalent, contrary to some neoclassical views. Let me use the word "dynamism" to mean the fertility of the economy in coming up with innovative ideas believed to be technologically feasible and profitable--in short, the economy's talent at commercially successful innovating. In this terminology, the free enterprise system is structured in such a way that it facilitates and stimulates dynamism while the Continental system impedes and discourages it.

BOG board room

Why do all good monetary economist want to grow up and be on the Board of Governors? A very cool board room has to be near the top of the list, but I don't think the fellow at the end of the table is Ben Bernanke. Ben has a beard.

Dynamic game theory in action

This story, from here, is probably not true.

Three economists and three mathematicians were going for a trip by train.Before journey the mathematicians bought 3 tickets(they could count to three)and the economists only one. The mathematicians were glad their stupid colleagues were going to pay a fine. However, when the conductor was approaching their ompartment, all three economists went to the nearest toilet. The conductor, noticing that somebody was in the loo, knocked on the door and in reply saw a hand with the ticket. He checked it and the economists saved 2/3 of the ticket price.Next day the mathematicians decided to use the same strategy - they bought only one ticket, but the economists did not buy tickets at all. When the mathematicians saw the conductor they went to the loo, and when they heard knocking they handed in the ticket. They did not get it back. Why? The economists took it and went to the other toilet.

James Hamilton plays Whac-a-Mole, kind of

James Hamilton reflects on some the conspiracy theories discussed in this Washington Post article to explain the recent swings in oil prices.