Attention Economy


Thursday, October 31, 2013

Japan Update

Interesting analysis from FT

Monday, October 28, 2013

US Higher Education – Self-Inflicted Wounds

An excellent WSJ op-ed by Lyell Asher, an associate professor of English at Lewis and Clark College, highlights the factors driving grade inflation and declining academic rigor (and, frankly, quality) in undergraduate courses at US universities. In particular, Mr. Asher observes:
“The problem is that, for the vast majority of colleges and universities, student opinion is the only means by which administrators evaluate teaching. How demanding the course was—how hard it pushed students to develop their minds, expand their imaginations, and refine their understanding of complexity and beauty—is largely invisible to the one mechanism that is supposed to measure quality.
It would be one thing if student evaluations did no harm: then they'd be the equivalent of a thermometer on the fritz —a nuisance, but incapable of making things worse. Evaluations do make things worse, though, by encouraging professors to be less rigorous in grading and less demanding in their requirements. That's because for any given course, easing up on demands and raising grades will get you better reviews at the end.
Meanwhile, studies show that the average undergraduate is down to 12 hours of coursework per week outside the classroom, even as grades continue to rise. One of these studies, "Academically Adrift" (2011) by sociologists Richard Arum and Josipa Roksa, suggests a couple of steps that could help remedy the problem: "high expectations for students and increased academic requirements in syllabi . . . coupled with rigorous grading standards that encourage students to spend more time studying."
Colleges can change this culture, in other words, without spending a dime. The first thing they can do is adopt a version of the Hippocratic oath: Stop doing harm. Stop encouraging low standards with student evaluations that largely ignore academic rigor and difficulty. Reward faculty for expecting more of students, for pushing them out of their comfort zone and for requiring them to put academics back at the center of college life.”

Professor Asher also notes the problems with accreditation agencies:

“Accrediting agencies could initiate this reform, but they too would first have to stop doing harm. They would have to acknowledge, for example, that since "learning outcomes" are calculated by professors in the exact same way that grades are, it's a distinction without a difference, save for the uptick in pseudo-technical jargon.”

Sunday, October 27, 2013

Monetary Policy

A Dangerous Path?
Some American economists are now touting the notion that higher inflation will ease US economic difficulties. Pursuit of higher inflation is a very risky approach as hard won central bank credibility (established primarily through the actions of the Volcker Fed in the late 70s and early 80s) maybe squandered for very little gain.
If faster increases in price levels (that is, higher rate of inflation) could fix structural problems, then most macroeconomic problems can be solved with ease. However, printing more money does not lead to sustained growth.
http://www.nytimes.com/2013/10/27/business/economy/in-fed-and-out-many-now-think-inflation-helps.html

Meanwhile,
An interesting piece in The Economist highlights the importance of the ‘natural rate’:

Market Efficiency and the 2013 Nobel Prize

Robert Shiller on his fellow 2013 Nobel Laureates

NYTIMES interview - Eugene Fama


Monday, October 21, 2013

Economics - Status Update


Economics – A Field Still in its Development Phase

From the WSJ article:
“…
"I think economics is in about the same state as medicine in about the 18th century," said Jonathan Wright, an economist at Johns Hopkins University, who has studied the effects of the 2007-09 recession on forecasts and models. As he puts it, economics has moved beyond leeches but hasn't yet reached the equivalent of modern medicine.”


Meanwhile,
Harvard’s Raj Chetty Argues that Economics is Indeed a Science

Interesting Items 10/21


The Economist on the 2013 Nobel Prize


The Economic Value of a Good Teacher

WSJ Piece - More Businesses Want Workers With Math or Science Degrees


US Treasuries Lose Cachet Abroad


World Bank – In Need of Reform


Nouriel Roubini