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DIED. JAMES TOBIN, 84, Nobel-prizewinning economist and adviser to President John F. Kennedy; in New Haven, Conn. A Yale professor and promoter of the Keynesian theory, which advocates government intervention to regulate economic cycles, Tobin crafted the Kennedy tax cut that spurred the boom of the early 1960s. His Nobel-winning portfolio-selection theory--which posits that investors do not simply seek the highest yielding assets but vary them according to risk tolerance and other factors--changed conventional thinking on how Americans spend and invest money...

Author: /time Magazine | Title: Milestones Mar. 25, 2002 | 3/25/2002 | See Source »

...street in the northern city of Bologna, and raised the specter of renewed urban terrorism. The day after Biagi's murder an offshoot of the Red Brigades movement, which was responsible for a wave of killings in the 1970s and 1980s, claimed that they had "executed" the economist and law professor for "regulation of the exploitation of salaried workers...

Author: /time Magazine | Title: World Watch | 3/25/2002 | See Source »

...actions, bringing about a bigger negative impact on social stability." In 1999, the last year for which Beijing issued labor-dispute statistics, the government recorded more than 120,000 "incidents," a 29% increase over the previous year. And although China's official unemployment rate is only 3.4%, Peking University economist Xiao Zhuoji puts the urban unemployment rate nationwide...

Author: /time Magazine | Title: Working Man Blues | 3/24/2002 | See Source »

...economy's resiliency has some economists, and even the Administration, asserting that last year's tough times don't qualify for R-word status. "It seems quite clear now that our economy maybe never suffered a recession," Treasury Secretary Paul O'Neill said last week. Sung Won Sohn, chief economist at Wells Fargo, agrees: "I personally don't believe we went into a recession." By one measure they're correct. Recessions are commonly defined as at least two consecutive quarters of declining gross domestic product, a measure of national output. This slump didn't make the cut. There has been...

Author: /time Magazine | Title: First, the Good News... | 3/18/2002 | See Source »

...rates and wide discounting, including 0% car loans. Incredibly, a third of all outstanding mortgages were originated last year--testament to the tidal wave of home refinancings that, on average, lowered homeowners' monthly payments by $100. Those who refinanced cashed out $100 billion of equity, says Frank Nothaft, chief economist at Freddie Mac. But, says Zurich Scudder's Allyn, the cash outs "are a little like eating your seed corn. It's not a long-term solution." Moreover, the refi boom is over, and many homeowners have larger mortgages and can no longer count on rapid appreciation to build equity...

Author: /time Magazine | Title: First, the Good News... | 3/18/2002 | See Source »

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