By Arturo Casadevall & Ferric C. Fang As young doctors in the 1980s, we witnessed the devastation of the AIDS epidemic. In those early years, patients died within months of diagnosis, often in agony, suffering headaches, diarrhea, shortness of breath and even blindness. Yet medical science fought back -- first identifying...
By John Sfakianakis Analysts and journalists appear fascinated by Saudi Arabian Oil Co.'s valuation. In the recent past, estimates have ranged from $400 billion to $2 trillion. The company’s real market value will be known when the initial public offering takes place. Countless times, analysts have tried to value companies, especially...
By Ferdinando Giugliano Like repentant smokers, Europe's politicians have promised to quit bailing out banks. They're finding the habit hard to break. The Italian government wants to rescue three banks which are struggling under the weight of non-performing loans. The trade-offs, as always, are complicated: financial stability now against financial stability later;...
By Tim Duy Federal Reserve officials continue to anticipate additional monetary policy tightening this year on the order of another two interest-rate increases. They have no reason to back down just yet. The weakness seen in “hard” economic data based on actual performance relative to “soft” data, such as surveys, is...
By Ted Halstead When President Donald Trump assumes that any policy to curb greenhouse-gas emissions must be bad for economic growth, job creation and U.S. competitiveness, he has things backwards. This miscalculation extends to U.S. trade policy, the central focus of Trump’s meeting this week with Chinese President Xi Jinping. Trump...
By Barry Ritholtz Depending upon which article you read, active stock management is either dying, dead or making a comeback. The truth, as usual, is more nuanced than the headlines suggest. Let’s start with the obvious: Active management, defined as selecting stocks or holding cash in an effort to surpass some benchmark, has...
Perhaps in a sign that the White House is beginning to understand the folly of simply claiming that everything is going fantastically well, a senior official tried a new approach last week: he framed the chaos as part of the kind of work in progress celebrated in Silicon Valley. "It's...
The kind of company you work for makes a big difference to your chances of getting raises, new research has found. This adds to growing evidence that what goes on inside firms matters beyond their walls. Researchers have shown that company-level differences have become large enough to influence national...
By Noah Smith When people come up to me and declare that economists are charlatans, they usually mention how economists failed to predict the Great Recession. This is true. No mainstream macroeconomic model of the day managed to anticipate that the largest, longest economic downturn since the Great Depression was imminent,...
Economists have long argued that the gross domestic product has many flaws as a measure of well-being and policy success. Yet there's a good reason it's still being used: There's a certain magic to it, despite its science being somewhat iffy. GDP: Measuring Income or Well-Being? On Monday, the National Bureau of Economic Research...