Thursday, June 24, 2010

The implications of zombies...

Daniel Drezner contemplates the implications of zombies for foreign policy. It of course impacts our understanding of economics as well. Discount rates and therefore interest rates could do a lot of things - they could go down (if zombies are going to be market participants), but they could also increase (you're going to place a high premium on the present if you could be eaten soon). Overlapping generation models are going to have to be completely recalibrated if agents can be reanimated. The impact on productivity is ultimately going to depend on whether we're dealing with fast zombies or slow zombies. There's a lot to chew on here. Any other concerns?

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