How can banks and similar institutions design optimal compensation systems? Would such systems conflict with the goals of society? This paper considers a theoretical framework of how banks structure job contracts with their employees to explore three points: the structure of a socially optimal...

A meticulous analysis reveals the full depth and breadth of U.S. economic inequality

In Ecuador, the transition to the U.S. dollar was sudden, dramatic and remarkably smooth.

Economic theory has been unable to explain the bond between competition and innovation. Until now.

Economist Pete Klenow analyzes price differences-over time, among products and across countries-to shed light on some of economics' most contentious issues

University of California, Berkeley, economic historians on the evolution of economic understanding, FOMC forecasting and more.

What do the data say about dollarization and international lending?

A conversation with Eugene Fama, the intellectual father of efficient market theory, passive portfolio management, and value and small cap mutual funds.