Author Archives: jfrankel

Energy Policies Can Be Both Geopolitical & Green

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April 29, 2022 — Russia’s invasion of Ukraine has amplified the importance of national security objectives when Western nations formulate energy policy.  At the same time, they should not take their eye off the ball of reducing environmental damage and, in particular, slowing down greenhouse gas emissions.  Both goals, geopolitical and environmental, are urgent.  The national security and environmental objective should be evaluated together, rather than via separate “stove pipes.”

Some talk as if the two goals are necessarily in conflict — because, for example, fighting back against Moscow by boosting domestic US oil production would contribute to air pollution and global climate change.  But there are plenty of steps that would benefit the environment and simultaneously further the geopolitical objective.  The most obvious steps, especially for the EU, are sanctions that cut demand for imports of fossil fuels from Russia. read more

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Why is the Nobel Prize sometimes awarded to economists with opposing viewpoints?

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April 14, 2022  —   Question from The International Economy:  Economics is the only field in which people can share a Nobel Prize for arriving at the complete opposite conclusion, something that arguably actually happened.  Should the Nobel Prize in Economic Sciences Be Put on Hold? —

My response:

It is true that the Prize in Economics in Memory of Alfred Nobel has been awarded in the same year to economists representing opposite viewpoints.  Not just once, but three times.

In 2013, the topic was stock markets. The winners included both Eugene Fama, for his work on the Efficient Markets Hypothesis (EMH), and Robert Shiller, for his rejection of the EMH in favor of the existence of bubbles, excessive volatility, and investor behavior that departs from rational expectations. read more

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Surprisingly Strong Sanctions

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March 21, 2022 — The surprising strength of economic sanctions deployed multilaterally against Russia this month has been exceeded only by the surprising strength of the heroic Ukrainian resistance to the invasion of their territory.  True, it is hard to imagine sanctions bringing the Russian economy to its knees faster than Russian troops are able to complete the hundred-mile advance to Kyiv from the border.  But sanctions have gone macroeconomic.  Ultimately, the Russian economy will suffer severely and lastingly. read more

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