The Economics Book

319 less than they invested. These investments, which are made for a set period, are what is known as “illiquid” investments. Th ...

320 BANK RUNS In September, 2007, the first serious British bank run since 1866 took place. Northern Rock, Britain’s eighth-larg ...

CONTEMPORARY ECONOMICS 321 In 1933, President Roosevelt signed an act that guaranteed bank deposits. Bank runs were reduced, but ...

322 SAVINGS GLUTS ABROAD FUEL SPECULATION AT HOME GLOBAL SAVINGS IMBALANCES IN CONTEXT FOCUS Global economy KEY THINKER Ben Bern ...

323 See also: Financial services 26–29 ■ Economic bubbles 98–99 ■ Market integration 226–31 ■ Financial engineering 262–65 ■ Fin ...

324 Saving seems, at first sight, a prudent thing to do, a safeguarding of the future. However, savings in the global capitalist ...

325 saving and investment—so the idea of a world awash with cheap cash is false. Other economists point out that the current acc ...

326 MORE EQUAL SOCIETIES GROW FASTER INEQUALITY AND GROWTH F or much of the 20th century economists asked themselves how economi ...

327 Nordic countries such as Sweden seem to contradict Alesina and Rodrik’s conclusions. They combine high tax with high living ...

328 EVEN BENEFICIAL ECONOMIC REFORMS CAN FAIL RESISTING ECONOMIC CHANGE R eform is designed to kick- start an economy and benefi ...

329 Sani Abacha seized power in Nigeria in 1994. His corrupt dictatorship was above the jurisdiction of the courts, which allowe ...

330 THE HOUSING MARKET MIRRORS BOOM AND BUST HOUSING AND THE ECONOMIC CYCLE M ovements in the housing market are a reflection of ...

331 See also: Boom and bust 78–79 ■ Economic bubbles 98–99 ■ Supply and demand 108–13 ■ Testing economic theories 170 ■ Financia ...

DIRECTO ...

RY ...

334 JEAN-BAPTISTE COLBERT 1619–1683 Although born into a family of merchants in Rheims, France, Jean- Baptiste Colbert chose a c ...

DIRECTORY 335 views on reform, and escaped to France and then England. He emigrated to the US, becoming the US consul in Hamburg ...

336 ARTHUR PIGOU 1877–1959 Born in Ryde, Isle of Wight, Arthur Pigou studied history at Cambridge University, UK, where he devel ...

DIRECTORY 337 the field of information economics. In 1982, he won the Nobel Prize. See also: Searching and matching 304–05 JAMES ...

338 KENNETH BINMORE 1940– British academic Kenneth Binmore is a mathematician, economist, and game theorist. His work has pionee ...