Every day the business press is filled with stories about what key central banks like the Federal Reserve, the Bank of England or the Bundesbank are doing to influence global economic affairs. For most of us these banks are relatively abstract institutions that control our lives but over which we have no control. However, there is one central bank that is unique. The Bank of Japan, which controls the money supply of the 3rd largest economy in the world, has shares traded on one of the Japanese stock markets. This means you can buy and sell parts of this central bank just like buying and selling shares of a major corporation like Google or Toyota. Not many people know about this and even fewer trade the stock. The day this was written just 5 trades happened. Continue reading Did You Know You Can Purchase Part of A Major Central Bank?
Month: December 2014
Did You Know the NFL is a Non-Profit That Pays No Taxes?
Earlier this semester I gave a lecture on the economics of non-profit organizations. Non-profits are given their status because the government wants to provide extra incentives for organizations to tackle problems and for individuals to donate money to solve these problems. In my lecture I discuss some standard examples like hospitals, symphonies and colleges. Then I take students to GuideStar, which reports on the finances of non-profits. GuideStar allows you to see the actual forms, called the 990, that almost all non-profits file each year with the IRS. Some students are then assigned the tasks of creating homework problems based on the lecture. Jerry Lavoie, one of my students, sent in an amazing homework that showed the NFL is a non-profit organization that pays no taxes. I was shocked to read this, but after double checking his work, it is true. Continue reading Did You Know the NFL is a Non-Profit That Pays No Taxes?
Does a Booming Stock Market Really Help Holiday Sales?
On Friday the U.S. stock market hit another all-time high! The rising stock market is leading to articles in places like the WSJ and CNBC that suggest a booming stock market is good for holiday sales. Unfortunately for stores, restaurants and online retailers, no matter what the stock market does there will not be much impact on their sales because of one simple reason. Continue reading Does a Booming Stock Market Really Help Holiday Sales?
Why Do Restaurants Encourage People To BYOB?
This past weekend I went to New Jersey for a reunion with three friends from high school. We had a great time talking about the past, present and future. For breakfast we went out to eat at PJ’s Pancake House. PJ’s is located across the street from Princeton University and is very busy serving food from 7am to midnight on weekends. I was surprised while sliding into the booth to see a large sign attached to the wall that said patrons were encouraged to BYOB (Bring Your Own Bottle/Booze/Beverage/Beer). The sign even gave three Italian sayings on why drinking and eating go together. Why would a restaurant encourage patrons to bring alcohol, especially in a college town? Continue reading Why Do Restaurants Encourage People To BYOB?