Edward Hadas

AOL, solidarity and health insurance

By Edward Hadas
February 19, 2014

The head of the American internet company AOL managed to say something really stupid a few weeks ago, and to sound callous at the same time. It’s a shame Tim Armstrong came off so badly, because he was trying to deal with a serious topic.

Mega sovereign writeoff could work

By Edward Hadas
February 12, 2014

A massive sovereign debt reduction is the right way to reduce the ridiculously high indebtedness of governments. The idea might sound crazy, but it makes economic sense, and could be done, albeit after some serious preparatory work.

Apple, banking and taxpayer subsidy

By Edward Hadas
February 5, 2014

Why does Apple have such high profit? Why do banking systems have a tendency to fail? These seemingly unrelated questions have the same answer – taxpayers take a lot of the risk out of business activity.

Don’t be afraid of deflation

By Edward Hadas
January 29, 2014

Christine Lagarde says deflation is an “ogre which must be fought decisively.” The managing director of the International Monetary Fund is merely dramatising the current conventional wisdom, but she is wrong.

Bitcoin repeats gold-standard errors

By Edward Hadas
January 22, 2014

I cannot judge whether bitcoin represents a technological breakthrough, but I am confident that the pseudo-currency’s popularity shows widespread economic amnesia. If bitcoin ever became a real currency, it would suffer from the crippling problems of the gold standard.

Madoff/subprime – spot the difference

By Edward Hadas
January 15, 2014

Bernard Madoff still has some magic. The public finds anything connected to the fraudster’s case fascinating, from a prison interview to JPMorgan’s agreement last week to pay $2.3 billion for Madoff-related sins. And why not? Madoff was a grandmaster of the confidence trick. But there is more to it than that. His way of doing business was alarmingly close to the perfectly legal practices which brought down the financial system in 2008.

An early obituary for bitcoin

By Edward Hadas
January 8, 2014

Bitcoin is not over yet. But the pseudo-currency is close enough to collapse to merit an early retrospective.

A Christmas message for lenders

By Edward Hadas
December 18, 2013

For many shoppers, Christmas is a time to rack up debts in the expression of seasonal goodwill. For policymakers, it should be the holiday of debt forgiveness.

How not to do healthcare

By Edward Hadas
December 11, 2013

Almost every healthcare system in the world is a lesson in how not to do it. The pricing-based model fails miserably in the United States. The rationing model works almost as badly in the UK. Both fail in the core task of ensuring that the right healthcare goes to the right people.

The pope takes on economics’ pro-rich bias

By Edward Hadas
December 4, 2013

The leading theories of economics and finance are usually produced for the rich. Pope Francis deserves praise for suggesting an economics for the poor.