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Influencers Work in Opacity and Need Professional Organization

Excerpted from THE INFLUENCER INDUSTRY: The Quest for Authenticity on Social Media © 2023 by Emily Hund. Reprinted by permission of Princeton University Press.

Deferred Bonuses as a Buffer Against Bank Failures

Hamid Mehran discusses proposals for reforming bankers' compensation to better align incentives and risk-taking. Mehran contends market-based, self-regulating compensation structures would enhance governance and financial stability more effectively than punitive bonus caps or clawbacks imposed by regulators.

Firms Sharing Board Members Can Collude To Reduce Worker Mobility

In new research, Taylor Begley, Peter Haslag, and Daniel Weagley find that when firms begin sharing a common director, there is a significant reduction in the number of employees that switch jobs between the two companies. The reduction is largest when the firms compete in the same labor market and for those employees who are most costly for firms to replace. The results show the link between overlapping board members and anticompetitive labor practices is a surprisingly widespread phenomenon.

The Trends That Will Define the Global Economy in 2024

Four economists discuss the trends in the global economy they are tracking in 2024

The Economic Consequences of Political Pressure on the Federal Reserve

Politicians often interfere with central banks, but it is not clear how to measure such political pressure systematically and therefore difficult to quantify its economic consequences. In new research, Thomas Drechsel finds that political pressure strongly and persistently raises inflation and inflation expectations but has little impact on economic activity.

Global Giants Team Up to Control Trade Policy

Hao Zhang examines how global value chain partnerships among large, monopolistic firms in the US enable new forms of political coordination and coalition-building to influence trade policy in their favor, despite popular backlash against globalization.

Antitrust Needs To Draw on Computer Science To Detect Algorithmic Collusion

In new research, Giovanna Massarotto explains how collusion manifests differently in the digital economy. She argues that antitrust regulators, scholars, and courts need to incorporate lessons from computer science to update how they monitor markets and identify algorithmic collusion.

The Pervasive Influence of Political Affiliation on Circuit Court Decisions

In new research, Alma Cohen finds that the political affiliations of Circuit Court judges influence decisions in a much wider variety of cases than previously thought.

How Stricter Merger Guidelines Benefit Workers

Stricter merger policy guidelines will increase competition, leading to higher wages and welfare for workers, writes Kyle Herkenhoff and Simon Mongey. The authors use economic modeling to show that the stricter 2023 Guidelines will improve worker welfare, and that even tighter thresholds can be applied to labor markets to amplify worker welfare gains from antitrust policy.

The Bankers’ New Clothes

The following is an excerpt from the book The Bankers’ New Clothes: What’s Wrong with Banking and What to Do about It - New and Expanded Edition by Anat Admati and Martin Hellwig published by Princeton University Press and reprinted here by permission. Also check out today's Capitalisn't interview with Anat Admati.

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