My good friend and colleague Rene Pineda wrote his unique methodology to get an A in a Macro Exam. Here is the transcript of his methodology:

How I’m going to get an A in Macro

I will study really hard. Of course, I won´t understand much and I will inmediately forget everything I learned.
Then, I´ll use Rene´s [...]

I rarely drink coffee, but the other day I went with a couple of friends to Starbucks, and decided to try an iced coffee. I asked for the smallest one available. However, the woman in the counter told me: “Are you sure? You know you could get the “Grande” (medium sized) for the same price”.

Effectively, [...]

As I wrote in a previous post, I’ll be spending this summer in India doing research in a micro-finance project. So, as promised, I will use this blog to keep you updated about my experiences and some of my findings during the whole summer.

So first thing first. This experience will be possible thanks to the [...]

One of the assumptions that economists use very often is the “diminishing returns to scale” assumption, which means that each additional worker in your factory (keeping constant the number of machines) helps to increase your output but in a smaller amount that the worker that joined before him. For instance, if you have a guitar [...]

I’ve been repeatetly arguing that this is a blog about nothings. However, as a good economist, we must test for this hypothesis.

My tool to test it is the website http://www.wordle.net/ which created this word cloud of my blog. The results are here:

Clearly, equilibrium is an important word for me. However, I think [...]

The NINJA (no income, no job or assets)  crisis, as explained by its creator – Leopoldo Abadia – is the analysis of the causes of the current economic crisis explained in a very subtle and funny way. I am sorry, it is in Spanish, and I didn’t find it with English subtitles. If someone finds [...]

In economics, equilibrium is the long term stable outcome of any dynamic process. We not always reach equilibrium, and to be honest, we don’t really care how do we reach them. We only care about their existence.

However, shocks can move us out of equilibrium, and it is interesting to see if after a shock we [...]

This is something funny I found in You Tube. For the record, I’m not endorsing the Internationale or Communism. I’m posting it just because today is May 1st. So just read the lyrics… it will be either funny or very inspiring for some of you: