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Mitchell: New Zealand’s road map for sweeping pro-market reform

New Zealand's reforms are - or at least should be - a road map for Greece to follow.

EDITORIAL – Cuban tourism’s biggest threat: Big government

Cuba’s ponderous government bureaucracy bears the lion’s share of blame for the lack of resources and substandard infrastructure that has dulled American travelers’ interest – offering a cautionary tale that the Cayman Islands should heed.

EDITORIAL – ‘Achievement gap’: Cayman’s economics versus education

From the mid-1960s to today, it could be said that the Cayman Islands deserves very high marks in “economics” … and very poor marks in “education.”

Ritholtz: Mr. Market doesn’t care about your politics

It’s election season, and that means it’s time for partisans to pose as economists and strategists in order to explain how much the markets support their favorite candidate. It is an exercise fraught with a fundamental misunderstanding of what drives markets at best – or intellectual dishonesty at worst.

Bovell: Population growth good for our islands

The Economics and Statistics Office provides a wealth of information on the Cayman Islands and recently issued some new reports that are worth discussing, in particular within the context of the real estate industry.

Bloomberg: Europe’s capital shortfall

Less than a decade after the financial crisis, Deutsche Bank is in trouble again.
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Smith: Has finance peaked?

It’s time to ask a scary question: How much of the financial industry will soon be obsolete?

Morici: Growing the economy, instead of bickering

The most disturbing aspect of the presidential campaign is neither major party nominee has adequately focused on rekindling economic growth.

Deflation continues: Prices down 0.8 percent in 2nd quarter

Consumer prices in the Cayman Islands have fallen for the past 18 months. The Consumer Price Index, which measures prices changes for a select basket of goods and services, dropped 0.8 percent in the second quarter compared to the same period in 2015.

Rahn: An election-related reality check

Back in 1978, when a big cut in the capital gains tax rate was being debated, CBO projected huge revenue losses. The tax cut actually resulted in big revenue gains, because it was a discretionary tax, and unlocked much frozen capital and changed the incentive structure.

EDITORIAL – Yet another Brussels blunder

From one financial services-dependent jurisdiction to another, we in the Cayman Islands can certainly commiserate with the frustration that people in Ireland may feel at the latest economic assault from Brussels.

A real loser of a tax

The issue is of renewed importance because of the rise of new, private digital-like monies (e.g., bitcoin).

Bloomberg: Break up ‘Big Syrup’

Most cartels – whether they seek to control oil, diamonds, cheese curds or whatever else – exist mainly to transfer wealth from buyers to sellers. That’s not something governments should be helping producers to do.

Rahn: Causing less harm by doing nothing

It has not only been a waste of money, it has done real harm. Some trillions of hard-earned taxpayer dollars have been spent to combat global warming over the last three decades.

Coats: Examining free trade amid globalization

Increased competition and innovation has reduced poverty in the world at a never-before-seen rate, it has also increased the numbers of workers having to give up the skills they had refined and acquire new ones.

Rahn: The case for free trade

When governments impose trade restrictions in the form of tariffs, quotas and other taxes or regulations, the cost of goods and services rises for consumers, producers tend to make lower profits and thus hire fewer workers at lower wages.

EDITORIAL – Whither Cayman: Globalism or populism?

The world has never been more prosperous. And yet, dissatisfaction with economic and social inequalities in a fast-changing global economy are engendering increasing division and social disruption throughout the world.

Rahn: The world is better than you think

It is not hard to argue that mankind has made very little progress in governance over the last 2,500 years [...] But at the same time, enormous progress has occurred in science and technology, making life better for all of us.

Mody: Drop the ‘Brexit’ panic talk

The doomsday narrative of British Prime Minister David Cameron, the Bank of England and their official friends around the world is setting a course for a self-fulfilling financial panic.

Mitchell: Is defending tax competition akin to ‘trading with the enemy’?

Our patriotism is to the ideals of the Founding Fathers, not to the bad tax policy of the U.S. government

Rahn: The fatal sickness of ‘free stuff’

The amazing and disappointing fact is that every student or even casual observer of socialism knows that it always fails because it destroys the incentives for hard work, creativity and initiative.

Coats: In defense of vultures and bottom-feeders

They clean up the mess beside the road that has been left there to rot. It is not a pleasant sight, but who can really object to the service these birds perform?

Morici: Failing schools fail US

Of the college graduates that can think, too many major in social sciences and humanities that provide little background to succeed in medicine, finance and the vast array of opportunities created by the digital economy.

Coats: Remove barriers to work

Most people, and I mean almost everyone, would rather work than receive welfare. Earning your own living is an essential element of happiness and self esteem.

EDITORIAL – How rich countries (mis)manage to go broke

The world has experienced the “tech bubble,” “housing bubble” and even the “tulip bubble." Now, we have the “government bubble.”

Rahn: The next financial crisis

The end is near – depending on how you define “near” and where you live.

Smith: Are automated lawyers coming?

Microeconomic theory gets little attention. The public usually only hears about macro, tax or labor economics - the things that affect day-to-day life. But deep within the stygian recesses of academia, bright mathematical minds are working on the economics of the next century.

Smith: There’s too much red tape (but only a little)

I’m very sympathetic to the idea that regulation holds back growth. It’s easy to look around and find examples of regulations that protect incumbent businesses at the expense of the consumer; for example, the laws that forbid car companies from selling directly consumers, creating a vast industry of middlemen.

O’Brien: Venezuela ‘should’ be rich

It’s come to this: The country with the largest oil reserves in the world can’t afford to brew its own beer, stay in its own time zone, or even have its own people show up to work more than two times a week.

Rahn: Negative interest rates are crazy

Would you like for the bank to give you a check each month for your mortgage interest payment rather than you paying the bank interest?

El-Erian: Argentina’s triumphant return

Last week, international capital markets enthusiastically granted redemption to Argentina, a serial defaulter on money it has borrowed from external creditors.

EDITORIAL – The flight of the millionaires

Last year, 10,000 millionaires fled France. Paris alone lost 7,000. But what does that have to do with the Cayman Islands? Plenty.

Coats: How much should a country work?

If an economy is not growing, is that necessarily a problem? The short answer is no.

Rahn: Tracing pathways to success and failure

Why is Hong Kong rich, Cuba very poor, and Puerto Rico struggling?

Government’s business surveys start April 4

In government’s expanding efforts to collect more detailed economic data, this year’s business surveys will ask for more specific expense data from across Cayman’s industries.

Will: The future will disappoint

Presidential campaigns incite both hypochondria and euphoria, portraying the present as grimmer than it is and the future as grander than it can be.

Rahn: The $3 million gift

Those reviled capitalists all over the world are creating more and better goods and services at lower cost, and in doing so improving everyone's real standard of living, well-being and happiness.

Morici: Delay interest rate hike until after primaries

The Federal Reserve should delay further raising interest rates until after the major party presidential nominees emerge this summer.

Rahn: Negative interest rates, upside-down economics

One of the odder destructive effects of very low or negative interest rates is the increased incentive to hold cash. Government officials do not like for citizens to hold large amounts of cash because hoarding cash reduces consumer spending, thus slowing economic growth.

Unemployment rate falls sharply

Cayman’s overall unemployment rate fell from 5.6 percent in spring 2015 to 4.2 percent in fall 2015, the government Office of Economics and Statistics reported Tuesday.

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