The level of capital tax gains has high explanatory power regarding the question of what drives economic inequality. On this basis, the authors develop a simple, yet micro-founded portfolio selection model to explain the dynamics of wealth inequality given empirical tax series in the US. The...

The underexamined art and science of managing the federal government's huge debt. Everyone talks about the size of the U.S. national debt, now at 13 trillion and climbing, but few talk about how the U.S. Treasury does the borrowing—even though it is one of the world's largest borrowers....

Until the global financial crisis, China was thought to be decades away from overtaking the United States as the world’s largest economy. But while the US skirted economic stagnation, China was able to successfully navigate the crisis, and its growth continues to accelerate. Has the time...