Links for 19th February, 2019

  1. “…granted, most supply has moved to Facebook and other social networks; it is no longer possible to build a viable web business with display ads. At the same time, the web is still as open as can be, which means there is room for new business models like subscriptions, a model that has only gotten started and is already producing far better content than the old mass market media model every (sic) did”
    The always excellent Stratechery blog on Spotify moving into the podcasting business. Read this to understand how pricing works in the world of the internet, and how an ad-based business is going to be difficult to sustain.
  2. “Goodhart’s law states that once a social or economic measure is turned into a target for policy, it will lose any information content that had qualified it to play such a role in the first place.”
    A current favorite of mine as an example: students must attend at least 75% of all classes in a semester assumes that a student will auto-magically learn once in class – for that is the reason behind the 75% attendance requirement. Do read, though. I’m sure you can think of a million different applications.
  3. “The constitution ensured that the Senate could protect the people against themselves, and simultaneously ensured that the Framers armored the Senate against the people. Should America be too Democratic, and grant too much power to the House, Madison worried that government would have a propensity “to yield to the impulse of sudden and violent passions, and to be seduced by factitious leaders into intemperate and pernicious resolutions.””
    As an Indian, I enjoyed reading this as a reminder of the thinking behind the Rajya Sabha and the Lok Sabha. And which is why I’d recommend you read it too!
  4. “What these results suggest is the headline inflation – expected to be in the 3% handle in the near future – will eventually start converging, over a 12-month period, towards core inflation which is currently running above 5%. If this were to come to pass, space for any monetary policy easing cycle – notwithstanding a one-off cute in February or April this year – would virtually evaporate.”
    Expect there to be an intense discussion about the differences between headline (overall) and core (overall minus fuel and food) inflation. This article is a decent analysis of the link between the two in the past, and today.
  5. “Consider Ms. Nishimasa’s daily routine. The preschool her two youngest children attend requires the family to keep daily journals recording their temperatures and what they eat twice a day, along with descriptions of their moods, sleeping hours and playtime. On top of that, her 8-year-old son’s elementary school and after-school tutoring class require that a parent personally signs off on every homework assignment.”
    A fascinating read from the NYT, to help us better understand the culture that is Japan.
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