- Links for 07-19-15
- 'Show Some Mercy'
- 'Like Humans, Apes Are Susceptible to Spin'
- 'Variable Geometry Bites Back: Schäuble’s Motives'
Posted: 19 Jul 2015 12:06 AM PDT
Posted: 18 Jul 2015 09:58 AM PDT
... In an earlier era, Greece could have devalued the drachma, making its exports more competitive on world markets. Easy monetary policy would have offset some of the pain from tight fiscal policy. Mr. Friedman and Mr. Feldstein were right: The euro has turned into an economic liability that has exacerbated political tensions. For this, the European elites who pushed for the currency union bear some responsibility.
As creditor nations and international institutions sort through the wreckage, it is worth bearing in mind the lessons from Mr. Keynes. A nation can only withstand so much economic pain before the political fallout becomes ugly. And that fallout can extend beyond the border of the problem nation.
Yes, the Greeks have every reason to be contrite. But it might also be wise for the rest of the world to show some mercy.
Posted: 18 Jul 2015 09:53 AM PDT
...The susceptibility to positive framing is what scientists call an irrational bias, and it is very powerful. To better understand why our psyche responds so deeply, Christopher Krupenye, a Duke University graduate student in evolutionary anthropology, and his colleagues Alexandra Rosati of Yale University and Brian Hare of Duke gathered 40 of our closest living relatives—23 chimpanzees and 17 bonobos—and offered them options for choosing food: either one or two fruits versus a constant number of peanuts. Sometimes the apes were shown one piece of fruit each time they made the selection, but half the time they were given two: positive framing. In other trials, the apes were initially presented two pieces of fruit, but half the time they got only one: negative framing. Regardless of the framing, the apes ended up with an identical quantity of fruit. Yet they were more likely to choose fruit when they were offered the single fruit with its frequent "bonus" than the double fruit with its frequent "loss."
Because these framing effects are shared with our nonhuman relatives, Krupenye says, the results suggest that these biases are hardwired into our biology and may have conferred some evolutionary benefit as apes foraged for food. Yet a hardwired tendency does not have to be a sentence. Although susceptibility to framing is in our blood, being aware of the bias can help us avoid making poor decisions. ... Chances are, you can use your brain to outwit your biology.
The sexes are not equally swayed by spin..., in the Duke study ... male apes were more affected than females by how their choices were framed. ...
Posted: 18 Jul 2015 09:47 AM PDT
Fabio Ghironi in Vox EU:
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