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Seven Truths About Regulating Interchange

Interchange fees on payment cards are obviously a hot topic in the United States, but also in Europe and in many other countries around the world.  The report on interchange fees released last month by the US Government Accounting Office (GAO) notes that more than 30 countries have intervened or are considering intervening in the ... Seven Truths About Regulating Interchange

Moving the Ball Forward: Macroeconomic Considerations

What is most surprising about the GAO report is how little the analytical discussion of this subject has advanced in the last decade.  We all know that interchange rates might contribute to higher retail prices: customers that use cheaper payment products can be said to “subsidize” customers that use credit cards.  Starting with the Australian ... Moving the Ball Forward: Macroeconomic Considerations

Why Now? The Faulty Economics of Credit Card Reform

About four years ago, I worked for Visa in opposing the opposed limitations on interchange fees that the Australian government was about to impose on the credit card industry. The situation there, like the situation in the United States, seemed hardly propitious for reform.  The use of credit cards was rapidly expanding, and the rate ... Why Now? The Faulty Economics of Credit Card Reform

EPA's Legislative End-run Strategy

Apparently the Obama administration is not very confident about getting its environmental climate change agenda passed through Congress. Given a legislative “solution” is off the table, at least for the foreseeable future, perhaps it is not surprising that today the EPA announced it’s ruling that greenhouse gases are “a danger to public health and welfare“. ... EPA's Legislative End-run Strategy

The Incorporation Transparency Act

This post is based on a legal backgrounder I recently published with the Washington Legal Foundation, which is available here.  This analysis is cross-posted from the Harvard Law School Forum on Corporate Governance and Financial Regulation. The Incorporation Transparency and Law Enforcement Assistance Act, introduced by Senators Levin, Grassley, and McCaskill and currently pending before the ... The Incorporation Transparency Act

I Do Not Think Those Words Mean What You Think They Mean

Here’s Henry Waxman on the federal government saving the newspapers from failing: “The newspapers my generation has taken for granted are facing a structural threat to the business model that has sustained them,” said Representative Henry Waxman, a Democrat from California. The loss of revenue has spurred a vicious cycle with thousands of journalists losing ... I Do Not Think Those Words Mean What You Think They Mean

Article 81 is dead! Long live Article 101!

The European Union has re-numbered its governing Articles following the entering into force of the Treaty of Lisbon.  So the former “Treaty Establishing the European Community” is now the “Treaty on the Functioning of the European Community.”  And the chapter on competition, former Articles 81 through 89, is now the new (and unchanged) Articles 101 ... Article 81 is dead! Long live Article 101!

Is Google or the government the problem?

Well, you probably know my answer to that one. I was interested to read Fred von Lohmann’s short take on the privacy aspects of the Google Books Settlement, available here. Fred and the EFF have, basically, two concerns.  The first is that [t]he products and services envisioned by the proposed settlement will give Google not ... Is Google or the government the problem?

DOJ Disconnect: Do we really need a roadshow?

And now for something completely different. Being the only non-lawyer economist in the group seems to warrant such a preface sometimes. Earlier this semester I received a call from a reporter for a nearby small-town newspaper. The DOJ had just announced its intent to hold a series of workshops jointly with the USDA to “explore ... DOJ Disconnect: Do we really need a roadshow?

Underappreciated Economists: UCLA Edition

I’m late to the “name your favorite underappeciated economist game” that was kicked off in light of John Cassidy’s Pigou column.  The Marginal Revolution crew points to Malthus and Fisher (Cowen and Tabarrok, respectively).  My first instinct is to go with Armen Alchian.  Though Armen has always been much appreciated on this blog.  So I’m ... Underappreciated Economists: UCLA Edition

Institute for Humane Studies Fellowships

Details here: Deadline: December 31Scholarships up to $12,000 for undergraduate or graduate study in the United States or abroad. Humane Studies Fellowships are awarded by the Institute for Humane Studies (IHS) to students interested in exploring the principles, practices, and institutions necessary for a free society through their academic work. IHS began the program in ... Institute for Humane Studies Fellowships

The Federal Reserve Under Attack

The WSJ describes how Chairman Bernanke is going on the offensive in advance of his confirmation hearings, using them as an opportunity to oppose those elements of the Dodd Bill that would strip the Fed of some of its powers.  However you feel about the policy debate, you’ve got to give him some credit for ... The Federal Reserve Under Attack