Article of the Week: 10 May

Congratulations to Josh Orell, winner of Article of the Week (10 May)!

The Greater of Two Evils

This article touches on the subject of not inflation, but deflation. With interest rates close to zero, this article deals with the possibility of deflation and how bad that could be for us.

Article of the Week: 3 May

Congratulations to Sobia Ijaz, winner of Article of the Week (3 May)!

Worries Rise on the Size of U.S. Debt

This article delves into the long term viability of government spending and borrowing. The authors claim that the current government policies are not sustainable because they would drive up interest rates. This would be specifically bad because it continues to increase our national debt. This is especially dangerous because there are fewer countries willing to buy our debt.

Article of the Week: 26 Apr

Congratulations to Sobia Ijaz, winner of Article of the Week (26 Apr)!

A nice article on the role of central banks and the difficulties they have faced in the past and those that lie ahead. The author writes that central banks will have to change the tools they have used in the past to counter the global economic crisis. Their central role will have to change from exclusively fighting inflation to also trying counteract deflation. The author also writes that central banks will play a greater role in the future, and will therefore be effected more by politics.

Article of the Week: 19 Apr

Congratulations to Ricardo Lansiquot, winner of Article of the Week (19 Apr)!

It May Be Time for the Fed to Go Negative

Discusses the idea of the Fed setting the interest rate to negative a number.

Article of the Week: 12 Apr

Congratulations to David DeVries, winner of Article of the Week (12 Apr)!

Is the economy picking up? Investors think so with last months 21% market increase. But is everything really getting better? This article takes a look at many indicators and quotes professionals that don't think we are quite done.

Tip of the Month: April

Congratulations to Sobia Ijaz, winner of Tip of the Month: April ($112 at Amazon).

Tip 1: I was having some trouble with the LaGrange Multiplier and found this tutorial video extremely helpful, it walks you through the steps. I hope it helps!

http://www.youtube.com/watch?v=ry9cgNx1QV8

Tip 2: Practice Makes Perfect

I found working problems from the book, in particular the first and sometimes the second problem for each section is usually a good drill of the basic concept the section is teaching. Once you are able to master the basics, by practicing the beginning problems, it makes doing the problem set, doing the practice exam, and of course the exam much more understandable and workable.

For example with Chapter 11 11.1.1 gives you 5 problems to drill on solving constrained optimization problems using the substitution method. Similarly, which I found extremely helpful, was 11.2.1 problems on using the Lagrangian multiplier method. I highly recommend going through these to get down the basics.

Working problems, sometimes over and over again until you fully understand them can be tedious, but when it comes to math, practicing really does to help perfect.

Article of the Week: 5 Apr

Congratulations to Janee Banks, winner of Article of the Week (5 Apr)!

The Incredible Shrinking Economy, Economist 2 Apr 2009

This article discusses Japans crumbling economy.