You've heard of an international market for superstar soccer players. We need an international market for superstar central bankers.
[ Reuters ]
Great Britain gets a lot of things wrong, like food and spelling. But here's something they get right: They're willing to poach the best central bankers from around the world for the top spots at the Bank of England.
The UK is hardly alone on this. They're just particularly aggressive about it. Their latest target is Mark Carney, the current chief of the Bank of Canada. Before that, though, they snatched up American economist Adam Posen -- an expert on Japan's lost decade -- to serve on their monetary policy committee. You've heard of an international market for superstar soccer players and Olympic coaches. This is an international market for superstar central bankers.
It got me thinking: How much is a good central banker worth? Consider this chart. The blue line shows where our economy could, and should, be if it had kept growing at its long-term trend since 2008. The red line shows where we actually are. The difference between the two is the so-called output gap. (Note: These dollar figures are not adjusted for inflation).
We're in about a trillion-dollar hole. And that's a trillion dollars every year. Even if we get "Morning in America: The Sequel" and the economy rapidly reverts to its long-term trend, we'll forever be $4 trillion poorer than we would have otherwise been.
Let's try a thought experiment. Say that Lars Svensson -- one of the world's top monetary economists and the current deputy governor of Sweden's central bank, the Riksbank -- could get our economy back to trend in half the time Ben Bernanke could. It's actually plausible-ish. Like Bernanke, Svensson spent his academic career championing unconventional monetary policy as a "foolproof" way to escape a liquidity trap. (Coincidentally, they were colleagues at Princeton). But unlike Bernanke, Svensson's Riksbank has been much more willing than Bernanke's Fed to experiment with these kind of heterodox policies. Perhaps unsurprisingly, Sweden's recovery has been the envy of the developed world. So I ask again: How much is a good central banker worth? Put simply, how much cash should we throw at Svensson to steal him away from Sweden?
That's another way of asking how long it will take the economy to return to trend. Here's where things get really depressing. According to Fed Vice Chair Janet Yellen, we won't get back to full employment until after 2018. If we assume the output gap will steadily shrink until then, that leaves us with roughly another $4 trillion in lost income. Maybe more. If Svensson really could double our recovery speed, he'd be worth $2 trillion to us. Even if that's being wildly optimistic, something on the order of hundreds of billions of dollars probably isn't. Tell me that wouldn't be worth paying Svensson a billion dollars a year. Maybe more.
The above suggestion is obviously a bit tongue-in-cheek ... but not completely. Right now, central bankers are paid almost entirely in prestige. Ben Bernanke is making just $199,700 this year. That's not to say that we need to pay central bankers more to attract the best ones. We don't. Economists really care about prestige.
This doesn't necessarily lead to the most efficient allocation of monetary economists. As Matt Yglesias pointed out, we'd ideally have economists prove their central banking chops in smaller countries before moving up to the big leagues of the Fed or the ECB or the Bank of England. Put a bit less diplomatically: Sweden is important, but it's a relative waste of Svensson's talents not to have him running a bigger central bank. (Not that I have anything against Sweden). Here comes the "to be sure" sentence: It wouldn't be enough just to import Svensson. As L.A. Galaxy fans can tell you, bringing in one (albeit, overrated) superstar like David Beckham doesn't help much if his teammates are only mediocre. We'd need to create a Federal Reserve board equivalent of the Super Friends for Svensson to make the biggest difference. We might even find out that we already have a superstar in Bernanke in that scenario.
Central banking should be a superstar profession. The difference between a top central banker and an average one can be astronomical, particularly when conventional policy is impotent. An efficient market would pay them accordingly. If the United States spent $10 billion assembling a central banking fantasy lineup of Lars Svensson, Stanley Fischer, Adam Posen, and Christina Romer, it would probably be a phenomenal investment. It'd pay for itself many, many times over. The biggest challenge is changing the norms around central banking. We shouldn't just consider the top American economists for the top spots.
We're a nation of immigrants. The Federal Reserve should reflect that.
The tech-industry veteran Linda Stone on how to pay attention
A longtime tech executive, Linda Stone worked on emerging technologies at Apple and then Microsoft Research in the 1980s and ’90s. Fifteen years ago, she coined the term continuous partial attention to describe the modern predicament of being constantly attuned to everything without fully concentrating on anything. Since then, she has frequently written and lectured about the challenges of living in an always-on, hyperconnected world.
James Fallows: You’re well known for the idea of continuous partial attention. Why is this a bad thing?
Linda Stone: Continuous partial attention is neither good nor bad. We need different attention strategies in different contexts. The way you use your attention when you’re writing a story may vary from the way you use your attention when you’re driving a car, serving a meal to dinner guests, making love, or riding a bicycle. The important thing for us as humans is to have the capacity to tap the attention strategy that will best serve us in any given moment.
Marijuana users had smaller waists and scored higher across several measures of blood sugar regulation.
"Marijuana use is associated with an acute increase in caloric intake," goes the clinical jargon for popular lore. Still despite eating more while high (by some measures, over 600 extra calories per day), marijuana users' extra intake doesn't seem to be reflected in increased
BMI. Indeed, studies have identified a reduced prevalence of obesity in the pot smoking community.
Researchers at the University of Nebraska, the Harvard School of Public Health, and Beth Israel Deaconess Medical Center analyzed data from a
nationally representative sample of over 4,600 adults. About 12 percent of the participants self-identified as current marijuana users, and
another 42 percent reported having used the drug in the past. The participants were tested for various measures of blood sugar control: their fasting
insulin and glucose levels; insulin resistance; cholesterol levels; and waist circumference.
The Islamic State is no mere collection of psychopaths. It is a religious group with carefully considered beliefs, among them that it is a key agent of the coming apocalypse. Here’s what that means for its strategy—and for how to stop it.
What is the Islamic State?
Where did it come from, and what are its intentions? The simplicity of these questions can be deceiving, and few Western leaders seem to know the answers. In December, The New York Times published confidential comments by Major General Michael K. Nagata, the Special Operations commander for the United States in the Middle East, admitting that he had hardly begun figuring out the Islamic State’s appeal. “We have not defeated the idea,” he said. “We do not even understand the idea.” In the past year, President Obama has referred to the Islamic State, variously, as “not Islamic” and as al-Qaeda’s “jayvee team,” statements that reflected confusion about the group, and may have contributed to significant strategic errors.
Martin O'Malley jumped into the race for the Democratic nomination on Saturday, giving Hillary Clinton another challenger.
For months, it looked like Martin O’Malley might be the only person brave enough to challenge Hillary Clinton for the 2016 Democratic nomination. Between her dominance and the Clintons’ legendarily long memory for slights, she seemed to have convinced most potential rivals not to bother.
But the Democratic field that the former Maryland governor joined on Saturday doesn’t look quite like what was expected. Yes, Clinton still has a comfortable lead over all rivals. But the rest of the ballot is more crowded. Jim Webb seems set to run. Lincoln Chafee is slated to announce a run on June 3. Most of all, Senator Bernie Sanders has become an unexpected force in the race.
The Sanders ascendancy is a challenge for O’Malley, who seemed to be aiming for the territory to Clinton’s left; O’Malley has criticized the former secretary of state over the Trans-Pacific Partnership. Another challenge is the recent unrest in Baltimore. Critics charge that data-based policing tactics that O’Malley ushered in as mayor helped create the tension between police and citizens that boiled over after the death of Freddie Gray. By announcing his campaign in Baltimore, O’Malley signaled that he intends to take that criticism on head-on. In statements since rioting and protests, he has suggested that such tensions are in fact exactly why he feels compelled to run.
We're all going to die and we all know it. This can be both a burden and a blessing.
In the heart of every parent lives the tightly coiled nightmare that his child will die. It might spring at logical times—when a toddler runs into the street, say—or it might sneak up in quieter moments. The fear is a helpful evolutionary motivation for parents to protect their children, but it's haunting nonetheless.
The ancient Stoic philosopher Epictetus advised parents to indulge that fear. “What harm is it, just when you are kissing your little child, to say: Tomorrow you will die?”he wrote in his Discourses.
Some might say Epictetus was an asshole. William Irvine thinks he was on to something.
“The Stoics had the insight that the prospect of death can actually make our lives much happier than they would otherwise be,” he says. “You’re supposed to allow yourself to have a flickering thought that someday you’re going to die, and someday the people you love are going to die. I’ve tried it, and it’s incredibly powerful. Well, I am a 21st-century practicing Stoic.”
People look to Amy Schumer and her fellow jokers not just to make fun of the world, but to make sense of it. And maybe even to help fix it.
This week, in a much-anticipated sketch on her Comedy Central show, Amy Schumer staged a trial of Bill Cosby in “the court of public opinion.” Schumer—her character, at any rate—played the role of the defense. “Let’s remind ourselves what’s at stake here,” she argued to the jury. “If convicted, the next time you put on a rerun of The Cosby Show you may wince a little. Might feel a little pang. And none of us deserve that. We don’t deserve to feel that pang.”
Her conclusion? “We deserve to dance like no one’s watching, and watch like no one’s raping.”
Ooof. This is the kind of thing that gets Inside Amy Schumer referred to as “the most feminist show on television,” and her act in general called, in a phrase that reveals as much about her craft as about Schumer herself, “comedy with a message.” But while Schumer’s work is operating at the vanguard of popular comedy, it’s also in line with the work being done by her fellow performers: jokes that tend to treat humor not just as an end in itself, but as a vehicle for making a point. Watch like no one’s raping.
The plight of non-tenured professors is widely known, but what about the impact they have on the students they’re hired to instruct?
Imagine meeting your English professor by the trunk of her car for office hours, where she doles out information like a taco vendor in a food truck. Or getting an e-mail error message when you write your former biology professor asking for a recommendation because she is no longer employed at the same college. Or attending an afternoon lecture in which your anthropology professor seems a little distracted because he doesn’t have enough money for bus fare. This is an increasingly widespread reality of college education.
Many students—and parents who foot the bills—may assume that all college professors are adequately compensated professionals with a distinct arrangement in which they have a job for life. In actuality those are just tenured professors, who represent less than a quarter of all college faculty. Odds are that students will be taught by professors with less job security and lower pay than those tenured employees, which research shows results in diminished services for students.
A new report estimates that 8,000 students from China were expelled in the 2013-4 school year. That’s bad news for U.S. schools.
A startling number of Chinese students are getting kicked out of American colleges. According to a white paper published by WholeRen, a Pittsburgh-based consultancy, an estimated 8,000 students from China were expelled from universities and colleges across the United States in 2013-4. The vast majority of these students—around 80 percent—were removed due to cheating or failing their classes.
As long as universities have existed, students have found a way to get expelled from them. But the prevalence of expulsions of Chinese students should be a source of alarm for American university administrators. According to the Institute of International Education, 274,439 students from China attended school in the United States in 2013-4, a 16 percent jump from the year before. Chinese students represent 31 percent of all international students in the country and contributed an estimated $22 billion to the U.S. economy in 2014.
Caves and tunnels have always been part of human life.
Caves and tunnels have always been part of human life. We've grown more adept at shaping these underground shelters and passages over the millennia, and today we dig for hundreds of reasons. We excavate to find both literal and cultural treasures, digging mines and unearthing archaeological discoveries. We use caverns for stable storage, for entertainment, and for an effective shelter from natural and man-made disasters. And as the planet's surface becomes ever more crowded, and national borders are closed, tunnels provide pathways for our vehicles and for smugglers of every kind. Collected below are more recent subterranean scenes from around the world.