Welcome to our new regular round up of noteworthy blogs and articles the @EEF_Economics team has been reading over the last month. In no particular order:
#1 Post Great Recession, businesses are still holding on to cash
Gross corporate savings rose to almost €2 trillion in 2015, and companies are divided between those saying they are saving to fund future investments (48 percent) and those building reserves for future crises (47 percent).
#2 Can developed economies 'A/B test' themselves back to brisk productivity by eeking out marginal gains?
The Undercover Economist takes a look at the limitations to our increasingly data driven culture.
#3 The world's largest wine exporter used to be Algeria, the impact of that on the wine industry is still felt today
Regional appellations with a soupçon of protectionism.
#4 Uber's new pricing model will be dependent more on who you are - not how long the trip takes
As Uber experiments with pricing models, complexity could introduce new problems. “Society is more willing to accept wealthy people paying higher fares,” said Chris Knittel, a business professor at the Massachusetts Institute of Technology. “But if the repercussion of lower fares in lower-income places is longer wait times, that’s probably what they want to keep an eye on.”
#5 Airports are going virtual bringing with it cost savings and a potential saving grace for smaller airports
Technology driving economics in the airport sector.
#6 What impact is [and will] Brexit have on investment?
A preview of the economic model to keep an eye on.
#7 The makings of another subprime financial crisis? America again, great.
“We’re setting people up to be in very expensive loans where they owe more than the car is worth for the duration,” says Mr Kukla. “So there’s a higher chance of having some kind of life event — such as a big medical bill — where they are forced to sell their car and end up in lots of trouble.”
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