The Chinese are saving like mad, but they are not getting a very good return on their savings. Edward C. Prescott Read Quote
After World War II, there were a lot of pension funds in Europe that were fully funded, but they were pressured to hold a lot of government debt. There was a lot of inflation, and the value of all those assets fell. Those pension funds couldn’t honor their promises to the people. Edward C. Prescott Read Quote
Random distributions are not good things, because people are risk-averse, and this risk adversely affects their welfare. If you get too much price uncertainty, all kinds of long-term, mutually beneficial contracts can’t be entered into. Edward C. Prescott Read Quote
I love creating models and coming up with explicit structures I can play with. Edward C. Prescott Read Quote
In the category of economic superpowers, more is better than less – the more technology those leaders develop, the more we all benefit. Edward C. Prescott Read Quote
A lot of technological capital has to be absorbed person-to-person, and that happens more quickly if countries are economically integrated. Edward C. Prescott Read Quote
Multinational companies use their technological know-how in their foreign subsidiaries, so reciprocal multinational relationships are key – they lead to a vested interest in both countries to remaining open. Edward C. Prescott Read Quote
