The most important price in an economy is the exchange rate between the local currency and the world’s reserve currency — the U.S. dollar. As long as there is an active black‐market (read: free market) for currency and the data …Continue reading
The whole world is worried about Africa, and with good reason. Late last year the International Monetary Fund and the World Bank approved a $34 billion debt relief package for 22 of what they classify as “heavily indebted poor countries”; …Continue reading
Last week, President Obama hosted the U.S.-Africa Leaders Summit in Washington, D.C. He welcomed over 40 African heads of state and their outsized entourages to what was a festive affair. Indeed, even the Ebola virus in West Africa failed to …Continue reading
The Wall Street Journal of August 31st carried an edifying op-ed by Kit Ramgopal and Matt Cooke. The title of their piece “Xanda the Lion Is Dead, but Trophy Hunting Helps His Kin” announces their thesis. That, as …Continue reading
Each year, I construct a Misery Index. The idea of such an index to measure economic misery was introduced by economist Art Okun in the 1960s as a way to provide President Lyndon Johnson with an easily digestible snapshot of …Continue reading
What do Slobodan Milosevic, Robert Mugabe, and Nicolás Maduro have in common? Other than being leaders who kept the Communist Manifesto at their bedside, all three ushered in devastating hyperinflations.
Hyperinflations are rare. They have only occurred when the supply…