Nicoleta Stoianovici
Nicoleta Stoianovici
Economist; private sector analyst
The Future of Economics Is Human

The Future of Economics Is Human

Private actors have long embraced behavioral economics as a way to boost sales and profits yet, until recently, the line of study had not been endowed with a front row seat in the hall of economic policy development. This year’s recipient of the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel (called the Nobel Prize for Economics), Richard H. Thaler, increases the proportion of behavioral economists upon whom the prestigious award has been bestowed to 6%. His work offers a glimpse into a particular type of libertarianism: coined as “libertarian paternalism” by this year’s Nobel Prize recipient and the co-author of his bestselling book “Nudge”, Cass Sunstein, the pair argues for guiding people in their choices under specific conditions. Libertarian paternalism would prevent losses resulting from neglecting to act upon lucrative propositions such as signing up for a savings plan where the employer matches one’s contribution up to a certain percent of one’s income and reasons in favor of providing as default options for policy implementation the best alternative for the individual or society as a whole (such as automatic enrollment in said savings program) in order to assist fallible or inexperienced individuals with key decisions. Thaler tries to match the two seemingly conflicting interests of the individual and the group (to him, choices need not be a zero-sum game) by minimizing the cost of externalities through defaults that are beneficial to one party while interfering minimally with respect to the other (a widespread example is that of favoring opt-out policies rather than opt-in, on the one hand to increase the number of participants and, on the other, to bank on people’s inertia). More

No. 7-8, Sep.-Dec. 2017 2017


The Keys to the American Economy Are Changing Hands

The Keys to the American Economy Are Changing Hands

A change in leadership is imminent for one of the most important institutions for the American economy. Janet Yellen, the first woman to chair the Federal Reserve, will step down at the end of her four-year tenure at the helm of the establishment, after becoming the first chair in recent years not to be nominated for a second term. More

No. 7-8, Sep.-Dec. 2017 2017


China’s Belated Spring Cleaning

China’s Belated Spring Cleaning

Historically, Chinese reform has been a byproduct of constraint. As James Kynge wrote in his book “China Shakes the World”, the country’s initial openness towards capitalism did not stem from a well-orchestrated strategy, but as a means to combat high unemployment and a payments crisis brought about by excessive spending in an attempt to jumpstart China’s manufacturing industry. Funding for the $12 billion investment was expected to be generated through an ambitious project – drilling in search of oil deposits – yet results were meager at best. As a result, part of the expenditure was postponed, yet the money already spent left behind a significant deficit. More

No. 7-8, Sep.-Dec. 2017 2017


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OEconomica No. 1, 2016