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Honoring the outstanding economists of our time
This week, AEI presented the 2014 Irving Kristol Award to Nobel laureate Eugene Fama.
ICYMI – Eugene Fama discusses efficient market theory with Wall Street Journal’s Paul Gigot
Tribute to Gary Becker, 1930–2014. Karlyn Bowman: “Becker did much to enrich his profession, winning
the Nobel Memorial prize in Economic Sciences in 1992 ‘for having extended the domain of
microeconomic analysis to a wide range of human behavior and interaction, including non-market
behavior.’ He was a long-time friend of AEI, serving the Institute as an adjunct scholar and as a member
of the Institute’s Council of Academic Advisers.”
Tribute to Murray Foss, 1918–2014. Karlyn Bowman: “Economist Murray Foss, who passed away on
May 4, joined AEI as a visiting scholar in 1979 after having served as senior staff economist at the
Council of Economic Advisers (1975–78) and as a researcher at the Bureau of Economic Analysis (1969-
Get smart on financial regulation
Money market funds were a victim of the crisis, not a cause. Peter Wallison: “As in medicine, the
wrong diagnosis of a policy issue can lead to the wrong prescription. A good example is the persistent
argument by the Financial Stability Oversight Council (FSOC) and the editorial pages of the Wall Street
Journal that a stable $1 net asset value (NAV) for money market mutual funds (MMFs) is somehow a
threat to the taxpayers or the stability of the financial system. The error, I believe, comes from a mistake
about the facts. . . .”
VIDEO — The FSOC’s regulation of SIFIs
PRESENTATION — The past, present, and future of Fannie Mae, Freddie Mac, and FHA
PRESENTATION — The economic costs of bank regulations on shadow banking
Times are changing
From taxing tobacco to taxing e-cigarettes. Alan Viard and Alex Brill: “A handful of Senate Democrats
are quietly promoting the pernicious idea of extending tobacco taxes to e-cigarettes. Taxing e-cigarettes
would threaten public health by penalizing a product that holds the promise of luring people away from
the traditional cigarettes that have caused so much death and disease.”
Gone are the ringing coins. Alex Pollock: “Fifty years ago, U.S. silver coins disappeared from
circulation, symbolizing a profound shift in the behavior of the government with respect to money. The
year 2014 is a little noticed 50th anniversary: the anniversary of the disappearance of U.S. silver coins
from circulation in 1964.”
In other news
The jobs challenge from smart machines. Jim Pethokoukis: “A key takeaway is that policies meant to
boost GDP growth may not be enough to guarantee broadly shared prosperity.”
Behind the policy curve at the European Central Bank. Desmond Lachman: “History is not going to
judge the European Central Bank kindly in its handling of Europe’s present deflation threat. Since, despite
every indication that the Eurozone’s inflation rate will continue to decelerate well into the danger zone, the
ECB chooses to wait.”
Beverly Hills bans fracking. Derek Scissors: “The City Council of Beverly Hills has unanimously voted to
ban hydraulic fracking within the city’s boundaries. Obviously, the movie and television industry is doing
well enough that no one needs the extra cash that might come from accessing underground deposits of
Mark your calendar
5.13 AEI event: A foundation for prosperity: An address by Sen. Rob Portman
5.15 Consumer Price Index released
5.15 Weekly jobless claims released
5.20 AEI event: The fourth revolution: The global race to reinvent the state
Keep up with AEIecon
Get up-to-the-minute updates on Twitter @AEIecon.
Read more from the American Enterprise Institute economic policy team at www.aei.org/economics.
Contact Abby at email@example.com if you have questions for the economics team.
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