Executive Summary: In response to the Chinese government’s threated export controls on rare earth minerals, the Trump administration has signed frameworks for cooperation on rare earth mining and processing with several countries. Almost all of these frameworks specifically mention price floors and other pricing controls as a potential policy tool. Though China is certainly engaging … Continue reading
Author Archives: lmoldovanu
Money Supply and the Current Account: Testing the Predictions of the AA-DD Model
Executive Summary: Policymakers have increased attention to current account deficits. Though experts debate whether current account deficits negatively impact the economy, many have also put forward theories regarding the influence of money supply on the current account. The classic AA-DD model predicts that in the short term, an increase in money supply should result in … Continue reading
Betting on Trade: Prediction Markets & Tariff Uncertainty
Executive Summary: President Trump’s frequently changing tariffs increased uncertainty for many businesses owners. This uncertainty could potentially damage the economy by reducing investment and new research and development processes. Polymarkets allow anyone to bet on an outcome by buying a yes share or a no share, with the price of a yes share corresponding to … Continue reading
