Saturday, December 18, 2010

The Economics of Seinfeld

The web site,, is all about teaching economics via Seinfeld clips.

Not so very long ago, the Federal Reserve limited how much banks could pay on interest bearing accounts. The banks got around this by providing valuable gifts to those who opened accounts, i.e., there was non-price competition.

Here's the clip on Kramer and Jerry with their gifts from the bank.

Here's a clip on the excitement of gaining a rent-controlled apartment in NYC and the payoffs made to get one.


No comments:

Post a Comment