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Designing compensation schemes is complicated, because of the difficulties in measuring performance and tying it to the actions of employees.
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According to estimates done by researchers at the Richmond Fed, the federal financial safety net covered $25 trillion in liabilities, or 59 percent of all financial liabilities, at the end of 2008. Such expansion of the safety net has weakened market discipline and contributed to instability in...
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https://huberto.ennis.googlepages.com/EnnisWeinberg2009.pdf
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We can question whether the economics profession adequately rewards speaking to the public but that public communication will be most valuable if it reflects recent advances in economic theory and quantitative analysis.
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