Fiscal Policy

UK Sovereign Debt Default Risk (or the absence thereof)

A recent empirical paper by Paulo Mauro and Jing Zhou suggests that even when the interest cost of government debt is less than the growth rate of the economy, the risk of sovereign debt default may still be of concern for both advanced economies and emerging markets:

“Sovereign default histories demonstrate that after prolonged periods of low differentials, marginal rates can rise suddenly and sharply, shutting countries out of financial markets at short notice.”

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Gender Inequality

The Gender Pay Gap & the Statistical Fallacies of Ben Shapiro et al

The gender pay gap “is an idiotic statistical lie” writes Ben Shapiro, because “it fails to take into account job choice, time in the workforce, hours worked, or any other factor that would remove the vast bulk of the pay gap.” As statistically fallacious as it is routinely argued, the prevailing notion that the gender pay gap, as a function of gender-based discrimination, is a mythical construct reflects a primitive understanding of economics and statistics.

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