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The only answer to the question of whether IP serves the desired purpose must be empirical. Does it work in practice? A great deal of applied economic research has tried to answer this question. The short answer is that intellectual property does not increase innovation and creation. Extending IP rights may modestly boost the incentive for innovation, but this positive effect is wiped away by the negative effect of creating monopolies. There is simply no evidence that strengthening patent regimes increases innovation or economic productivity. In fact, some evidence shows that increased protection even decreases innovation.

Ideas kept under lock and key are much less useful than those that are freely available. So we find Africans dying of AIDS because they cannot afford to pay monopoly prices to patent holders of certain drugs. Or, at a more mundane level, we cannot legally watch movies on our new Android phones because "rights holders" do not wish us to. And we must suffer through such indignities as being sued by voting machine companies over copyright violation when their malfunctioning software is revealed to the public.

Rather than trying to continually fix the existing system with band-aids, it would be far better to eliminate it entirely. The resulting drastic restructuring of industry would lead to new, more competitive business models – and an environment far more favorable to the small entrepreneur.

the North Korean government revalued the country's currency, the won, and imposed restrictions on the quantity of old bills that people could convert for the new ones. Pyongyang's revaluation means that 100 won is now worth 1 won.

the revaluation is a major measure designed to consolidate the government's control over the economy as it works towards unveiling the DPRK as a "strong and prosperous nation" (kangsong daeguk) in 2012. Defectors had noted that the market activity sprouting out over key parts of the country had been eroding discipline -- corruption among officials had been increasing significantly, fueled by a growing group of prosperous market traders. This trend had the effect of decentralizing the DPRK regime's power.

In an apparent effort to restore discipline through this revaluation, the DPRK government may have initiated a period of economic, social, and political destabilization by undermining a widely used coping mechanism for the people, as well as a growing number of officials.

But after the country's contested presidential elections in June, the majority of Iran's parliament formally endorsed Ahmadinejad's victory. In late October, lawmakers cemented their support by backing legislation to phase out by March 2014 subsidies for fuel, water, flour, bread, wheat, rice, oil, milk, sugar, and postal and transportation services.

The subsidies, which the president argues benefit the wealthy more than the poor, are to be replaced with cash handouts to the lower-income half of Iran's population, with compensation currently estimated to be worth 170,000 rials ($17) a person

Critics say Ahmadinejad's lavish spending on housing projects, infrastructure, cash handouts, and subsidized loans since his election in 2005 has spurred inflation and reduced currency reserves to a precariously low level

Yemen has frequently been described as a failing state -- and with good reason. Civil war, terrorism, a deepening secessionist movement and economic and demographic trends threaten to overpower the Yemeni government, provide a breeding ground for terrorists and destabilize the region. Yemen has often teetered on the brink of collapse, but it has never faced so many interconnected challenges at one time.

At the heart of the country's problems is a looming economic crisis. Oil is the source of nearly 80 percent of government revenue, and it is quickly running out. There are few viable options for a sustainable post-oil economy, and Yemen is already the poorest country in the Arab world with an unemployment rate conservatively estimated at 35 percent. Yemen's pending economic collapse has been greatly accelerated by the civil war in Saada. Government forces have been unable to decisively put down the rebels in the north of the country, and there is no military solution to the conflict. The toll in Saada has been severe, with extensive damage to infrastructure and an estimated 175,000 internally displaced people. The conflict's strain on the Yemeni army has led to questions about the military's ability to simultaneously engage in other operations, including counterterrorism. The government is spending foreign currency reserves at an alarming rate, recently estimated at more than $200 million per month. Spending on the war will create a major budget deficit next year. Every dollar spent on the civil war is a dollar not spent on addressing the underlying causes of instability in Yemen. Yemen also is facing a growing secessionist movement in the south of the country. When the war in Saada subsides, it is feared that the secessionist movement will again flare up.  The government does not control the entire territory of Yemen, and the emergence of additional areas outside of the capital of Sanaa's control will create more under-governed spaces that can be exploited by terrorist movements.

Military operations to kill or capture al Qaeda operatives will likely increase in 2010. These actions carry risks. Publicly acknowledged American involvement in counterterrorism operations in Yemen would be deeply unpopular in the country, likely undermine the legitimacy of the Yemeni government and feed into the grievances that help fuel al Qaeda militancy. Development assistance is one of the most effective tools available to address the interconnected long-term challenges facing Yemen. But, U.S. aid is disproportionately small considering the magnitude of the problems facing the country and Yemen's strategic importance to the United States. In addition to the reported $70 million of military and security assistance, the United States recently announced $121 million in development aid over the next three years, a significant increase from previous years and a vital step in the right direction. Still, the amount pales in comparison to the $1.5 billion allotted to Pakistan in the next year alone. This disparity persists even as U.S. officials increasingly cite Yemen as a terrorism and security priority second only to Afghanistan and Pakistan.

President Obama is pushing for a permanent middle-class tax cut, but only if Bush-era cuts for top earners are eliminated. Republicans, in turn, want permanent tax relief for all income levels. The divide is rapidly becoming the marquee issue of the midterm election.

Given the lackluster recovery — with crucial housing and job markets still ailing — an expiration of tax cuts worth about $300 billion a year would be a huge hit to the economy, equivalent to 2% of the nation's total output. The potential economic fallout is far less clear if tax rates rose only for high earners.

The chances are small that Congress might address the issue before the November election. But there are ample opportunities for both parties to use their economic messages during the campaign.

For North Korea, he says, the potential dividends of returning to talks are much higher, including "diplomatic recognition and economic aid," as promised in the Geneva agreement of 1994 between the US and North Korea and then in agreements reached at six-party talks in 2005 and 2007.

Analysts believe North Korea, facing the severe hunger and disease that has stricken the country periodically since the 1990s, is also suffering from UN economic sanctions imposed after its second underground nuclear test on May 25. The US is pushing strenuously for enforcement of the sanctions, designed primarily to keep North Korea from importing and exporting military materiel, notably missiles, and anything to do with weapons of mass destruction.

Though the official results are not yet known, exit polls show that Morales won roughly 63% of the vote, with his closest rival, former conservative governor Manfred Reyes Villa, winning around 23% of the vote. The Movement Toward Socialism (MAS), Morales’ political party, also won over two thirds of the seats in the lower house and the senate, meaning the MAS administration will have an easier time passing laws without right wing opposition.

During his first four years in office Morales partially nationalized Bolivia’s vast gas reserves, ushered in a new constitution written in a constituent assembly, granted more rights to indigenous people and exerted more state-control over natural resources and the economy. Much of the wealth generated from new state-run industries has been directed to various social and development programs to benefit impoverished sectors of society.

Thanks to such far-reaching government programs and socialistic policies, Bolivia’s economic growth has been higher during the four years under Morales than at any other period during the last three decades, according to the Washington-based Center for Economic and Policy Research.

American incomes rose in November for the fifth straight month, providing much-needed traction for economic recovery. The overall personal income earned by Americans rose by 0.4 percent in the month, according to numbers released by the Commerce Department Wednesday.That fueled a gain in consumer spending, which rose 0.5 percent from October.

American incomes rose in November for the fifth straight month, providing much-needed traction for economic recovery. The overall personal income earned by Americans rose by 0.4 percent in the month, according to numbers released by the Commerce Department Wednesday.That fueled a gain in consumer spending, which rose 0.5 percent from October.Another jolt of positive news: Consumer confidence rose in a December survey by the University of Michigan and Reuters.The picture is still not one of a brisk rebound for the economy. Much of the gain in incomes continues to come from government stimulus programs, and the gains in income and spending are smaller when inflation is taken into account. (Adjusting for inflation, personal income rose 0.2 percent in November. The gain was just 0.1 percent when the impact of government transfer payments is subtracted.)

Mr. Bethune predicts that Gross Domestic Product (GDP) will rise in the fourth quarter at a 4 percent annual pace, up from the third quarter's 2.2 percent rate, which the government reported Monday.

41% of the public says the United States plays a less important and powerful role as a world leader today than it did 10 years ago -- the highest percentage ever in a Pew Research survey.

44% of the public now says China is the world's leading economic power, while just 27% name the United States.

the percentage saying that the United States should "mind its own business internationally and let other countries get along the best they can on their own" has reached an all-time high of 49%.

if large economies keep interest rates loose for too long, faster global growth could instead add fuel to the fire. Tighter monetary policy in the United States and the Euro area is still a way off, but may be edging closer.  The European Central Bank will conclude emergency lending in December. The rate on the final loans will be indexed to the ECB’s benchmark rate, rather than fixed at 1 percent, giving the Bank room to raise interest rates if needed. Unemployment, a key signal for central bankers considering raising rates, fell to 10 percent in the United States last week, but it is not yet clear if this improvement will persist.

These price surges could cause or temporarily conceal bad debts in a number of smaller economies, hurting investors who have turned to these markets. However, unless these surges continue, the risk to the global recovery will be contained. Dubai World’s recent near default illustrates the potential shocks that debt from bursting asset bubbles can cause. Similar problems could and probably will emerge in other economies which have been badly hit by the crisis, and where government finances are stretched, including Ireland, Greece, and the Baltics.

The Obama administration established new federal greenhouse gas pollution limits. An October executive order requires federal government agencies to set greenhouse gas emission reduction targets that must be met by 2020. All of these actions, along with additional steps forward, will help enhance American economic competitiveness. And on December 7, Environmental Protection Agency Adminstrator Lisa Jackson announced the "endangerment finding" under the Clean Air Act. This enables EPA to finalize limits on global warming pollution from motor vehicles and large industrial sources. President Obama would prefer that Congress, rather than EPA, establish these pollution limits, but the endangerment finding means that EPA will act if Congress fails to do so.

China announced a carbon reduction target. The Obama administration’s hard work with China and India is starting to pay off. China announced on Thanksgiving Day a target of reducing carbon pollution per unit of gross domestic product by 40 to 45 percent from 2005 levels by 2020. This is the first time China has committed to specific carbon reductions. The November joint statement by Presidents Obama and Hu Jintao on the creation of a greenhouse gas inventory between the U.S. EPA and China will make it possible to measure and verify these reductions.

India announced a carbon reduction target. India announced on December 2, soon after the U.S.-India summit in Washington, that it intends to offer a target for decreasing its carbon intensity 24 percent from 2005 levels by 2020. This is the first time India has proposed its own specific carbon reduction target, which adds to its already established commitment to set the largest solar power generation target in the world.

This important study by Betsey Stevenson of the University of Pennsylvania tests the relationship between Title IX, which led to an increase in girls' and women's sports, and female academic and professional outcomes. (The link is to her draft; the final version is upcoming in the Review of Economics and Statistics.) She found that every 10 percent increase in participation in girls' high school athletics leads to a 1 percent increase in girls' college attendance and a 2 percent increase in women's workforce presence. Further, Stevenson finds that "greater opportunities to play sports leads to greater female participation in previously male-dominated occupations, particularly for high-skill occupations."

Pakistan’s recent “Rah-e-Nijat” (Path to Salvation) military operation in the South Waziristan agency of the Federally Administered Tribal Areas (FATA) has achieved tremendous success since it began on October 17. It is believed that security forces should be able to clear the main towns of Taliban presence by early December 2009, when it starts snowing in the region (Daily Times [Lahore], November 1)

The recent successes in Pakistan’s military operation in Swat and South Waziristan testify to the fact that Pakistan has sufficient counter-insurgency capability to dislodge the Taliban from their strongholds in FATA and NWFP. This nullifies the previous assumptions regarding the Pakistani armed forces that they were tailored to fight conventional warfare against regular armies in plains and deserts and lacked the training and ability to conduct CI operations in mountainous terrain against non-state actors.

The public support which the Pakistan Army received from people in the conflict zone as well as from the entire country helped in carrying out the counter-insurgency operations successfully. The popularity of the Taliban – which remained quite high during 2003-2007 – dipped to an all time low. The successful conclusion of the first phase of the counter-insurgency would restore public confidence over the Pakistani armed forces and raise the morale of the security personnel