Summary: The central bank of Ukraine has been working hard to maintain macroeconomic stability in face of extreme conditions. One of their jobs is maintaining a stable currency (hryvnia) as the expensive war wages on. We see how the exchange rate impacts a woman trying to supply crucial medicine to Ukrainians. Students get practice with exchange rate conversions in this setting.
Summary: The bond market is “risky and frisky” and the inverted yield curve is flashing red! The Indicator chats with Campbell Harvey who suspects the yield curve may not be right this time or that “it is so right, that it may be wrong.” Students will visit FRED and examine whether Campbell Harvey’s suspicion is true…
Summary: The US will face a shortage of thousands of doctors in the next decade. This does not bode well for a growing and aging population. The Indicator explores how changes in funding for residency slots in the 1990s has been a driver of this problem. Our accompanying exercise applies simple supply and demand to this context.
Summary: Lithium-ion batteries have revolutionized the way we use and store energy. They are a key component in EVs and many of the devices and technologies we use every day. But battery fires, specifically on cargo ships transporting all of these items, are a growing risk. The Indicator speaks with an insurance professional as well as a fire expert on this this dangerous, high temperature “thermal runaway” situation. Students will think through how this risk affects the costs of production
Summary: If economics and philanthropy had a baby, it would be Effective Altruism. The Indicator explores this movement to maximize the potential of charitable donations, and also discusses its critiques. In the Teaching Idea, students use an “Impact Calculator” to explore how “effective” of an impact their hypothetical $100 will have.
Summary: Chinese tourists account for a very large fraction of tourist dollars worldwide. As global travel picks up again, this episode highlights the substantial contribution Chinese tourists make to different economies and it explores what might drive their flow in the near future. Our companion exercise works through how tourism fits into the GDP expenditure approach.
Summary: The new “High Seas Treaty” is out and lays out a plan to govern maritime activity with a goal of preserving biodiversity. The Indicator speaks with an expert who underscores the importance of this agreement as companies and government eye high-tech fishing and deep seabed mining. The current situation in the high-seas may be news to many, but it is a clear-cut example the age-old tragedy of the commons.
Summary: The Fed raised interest rates by 25bp yesterday. How does that affect you? This episode aired almost exactly year ago– when the Fed was just embarking on its rate hikes– delves into the implications for mortgage rates. The accompanying teaching idea prompts students to put themselves in the shoes of a homebuyer.
Summary: More on banking! Specifically more about a crucial job in the economy’s financial regulation ecosystem– the bank examiner. We hear about a “natural experiment” that shows that, in the absence of bank examiners, banks basically acted liked kids throwing spitballs in a classroom without a teacher! We also hear that we will likely face a shortage of bank examiners in the future. Uh oh! Inspired by this fact, our teaching idea is a career-exploration exercise created by Prof. Natalia Smirnova. Students use the rich BLS data to explore their own futures.
Summary: Another chapter in the Banking Turmoil of 2023– the end of Credit Suisse, a long-standing Swiss banking institution. The Indicator recaps how it got to the end of a road full of bad bets, unprofitable lending and scandal. We also hear about the discomfort in markets in the aftermath of the UBS-Credit Suisse merger down due to the write-down of “CoCo” bonds We seized this opportunity to create a quick, refresher (or even intro!) exercise on capital structure.
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