Archive for November 17th, 2017

How shops use tricks to get you spending..

November 17, 2017

Nice piece by Prof. Cathrine Jansson-Boyd of Anglia Ruskin University. One knows most of these tricks but still get tricked..

In the business of shops and selling, times are tough. Retail sales indicate that shops are are struggling to persuade customers to part with their cash.

But there are some innovative methods which retailers are using to address the challenge of enticing and engaging consumers. And it’s not just about slashing prices and Black Fridays. Many well-known businesses make use of psychology to connect with customers and increase sales.

Here are some of the tricks they have up their shop sleeves.

Read on..

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Bernanke, Geithner, Paulson to lead new project explaining decisions of financial crisis…

November 17, 2017

One does not know how to react to such research projects. When the chief actors during the 2008 crisis get to figure what was behind their very decisions:

Ten years after the onset of the worst financial crisis in generations, the first-person “we were there” accounts by the those who led the rescue have been published, journalistic accounts have been written—and even turned into made-for-TV movies—and the Financial Crisis Inquiry Commission has disbanded after publishing its report on the causes of the crisis.

But in one important respect the record is incomplete: There is no coherent and detailed explanation of the dozens of design decisions the first responders made as they crafted the many rescue and stabilization programs. Why, for instance, did the Federal Reserve conduct auctions for its Term Auction Facility on Mondays, but provide winning banks the cash on Thursdays instead of immediately? (So no one would conclude that a bank that borrowed this way was so desperate that it needed the cash to open the next morning.) More generally, what options were rejected and why? In hindsight, what worked as anticipated and what did not? Besides completing the historical record, answers to such questions may clear up some lingering controversies and may prove useful the next time the U.S. or any other country confronts a severe financial crisis.

To fill that gap, the Hutchins Center on Fiscal and Monetary Policy at Brookings has teamed up with the Yale Program on Financial Stability to commission papers from those who crafted the rescues in the Bush and Obama administrations and the Federal Reserve.

The project will be led by former Treasury secretaries Tim Geithner and Hank Paulson and former Fed Chair Ben Bernanke, and will culminate in the presenting of research at a Brookings conference close to the tenth anniversary of the crisis on September 11 and 12, 2018. The conference will end with reflections by Messrs. Bernanke, Geithner and Paulson. My colleague, J. Nellie Liang, Miriam K. Carliner Senior Fellow in Economic Studies at Brookings and former director of the Fed’s Division of Financial Stability, will serve as editor for the papers.

Scholars will be studying and writing about the causes and consequences of the global financial crisis and the Great Recession for decades to come.  We hope the unique nature of this project—the first-hand accounts by those who were in the trenches—will inform that work.

Looking forward to this…

A Tale of Two Cities: Why Hamburg succeeded and Lübeck declined?

November 17, 2017

Nice post by Prateek Raj.

The German cities of Hamburg and Lübeck have an interwoven and eventful history. Whereas Lübeck offers an example of how dominant cities may become unattractive and decline when they end up serving the interests of a privileged few and refuse to change, Hamburg serves as a tale of how cities can reinvent themselves by changing with the times.

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Got a cold? How and why Indonesians trust coin rubbing on their bodies..

November 17, 2017

Traditions vs. medicine. Who wins?

Prof Johanna of Universitas Indonesia has a piece on how traditions win in Indonesia. People prefer to rub coins on their bodies to the extent it leaves red marks on their bodies:

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Why the worst humans are able to rise to power? (cues from Hayek’s Road to Serfdom…)

November 17, 2017

As debates rage over the Mugabe era and whether Zimbabwe will see democracy or dictatorship.

Recent scholarship finds that while “democratization coups” have become more frequent worldwide, their most common outcome is to replace an incumbent dictatorship with a “different group of autocrats.”

Signals in Zimbabwe are mixed so far. Experts generally describe the latest developments as “an internecine fight” among inner-circle elites and ask two key questions: Which side will prevail, and will violence break out?

In my assessment, the answers hinge on Mnangagwa, a hard-nosed realist and survivor who was critical in securing Mugabe’s four-decade rule. Mnangagwa has an appalling human rights record. Many consider him responsible for overseeing a series of massacres between 1982 and 1986 known as the “Gukurahundi,” in which an estimated 20,000 civilians from the Ndebele ethnic group perished.

More recently, in 2008, civil society groups accused Mnangagwa of orchestrating electoral violence against the political opposition and rigging polls in Mugabe’s favor.

It is also true that Mnangagwa is massively invested in ensuring his continued and unfettered access to power, which has proven highly lucrative for him. The vice president is “reputed” to be one of Zimbabwe’s richest people. All of this suggests he might become yet another dictator.

The big question is how do these people come to power at all? Brittany Hunter picks cues from Hayek’s Road to Serfdom:

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