Econ Comments & Analysis
Bloomberg | Russian Holdings of U.S. Treasuries Dropped 20% in March
Russia’s holdings of U.S. government securities fell by 20 percent in March as the U.S. and Europe stepped up pressure against Russia and as analysts said the nation’s central bank tried to shore up the value of the ruble.
Mercatus | A Better Balanced Budget Rule
A negative externality arises when A’s actions impose costs on B without the latter’s consent. If a manufacturer is allowed to dump noxious byproducts into a river, imposing costs on downstream residents, it creates a negative externality. Because he fails to account for the costs he imposes on others, the manufacturer will make too much of his product.
