Wall Street Journal - Xia Yeliang: The China Americans Don't See < 5min

A Peking University economics professor who was sacked for his political views explains the underside of elite Chinese higher education. … Mr. Xi, 53, says he had a mostly apolitical youth in Anhui province, west of Shanghai, where both of his parents were shipyard workers for China's navy. He never considered himself a communist and says he always felt drawn to the West, thanks partly to foreign picture books from his childhood. He imagined life as a painter or translator, and after graduating college in 1984 went to work as an interpreter for the government's Foreign Affairs Office. … His political awakening came later, in 1987-89, when he studied management at the University of Toronto, visited several European democracies—and read Milton Friedman's "Free to Choose." Friedman's writing helped make Mr. Xia a classical liberal and, by the mid-1990s, a student of economics. Today he cites F.A. Hayek, Ludwig von Mises, James Buchanan and Gary Becker among his intellectual idols. The list also includes Xiakoai Yang, the Chinese economist—and Mao-era political prisoner—who convinced him that China cannot thrive without imitating the institutions, and not just the technologies, of the West.

Nature - The power of prediction markets 8min

Scientists are beginning to understand why these ‘mini Wall Streets’ work so well at forecasting election results — and how they sometimes fail. ... Experiments such as this are a testament to the power of prediction markets to turn individuals’ guesses into forecasts of sometimes startling accuracy. That uncanny ability ensures that during every US presidential election, voters avidly follow the standings for their favoured candidates on exchanges such as Betfair and the Iowa Electronic Markets (IEM). But prediction markets are increasingly being used to make forecasts of all kinds, on everything from the outcomes of sporting events to the results of business decisions. Advocates maintain that they allow people to aggregate information without the biases that plague traditional forecasting methods, such as polls or expert analysis. ... sceptics point out that prediction markets are far from infallible. ... prediction-market supporters argue that even imperfect forecasts can be helpful. ... People have been betting on future events for as long as they have played sports and raced horses. But in the latter half of the nineteenth century, US efforts to set betting odds through marketplace supply and demand became centralized on Wall Street, where wealthy New York City businessmen and entertainers were using informal markets to bet on US elections as far back as 1868. ... Friedrich Hayek. He argued that markets in general could be viewed as mechanisms for collecting vast amounts of information held by individuals and synthesizing it into a useful data point — namely the price that people are willing to pay for goods or services.

The Economist - Vienna: How Vienna produced ideas that shaped the West 8min

Imperial Viennese society could not survive. But the ideas and art brought forth during the fecund period of Viennese history from the late 1880s to the 1920s endured—from Loos’s modernist architecture to Gustav Klimt’s symbolist canvasses, from Schoenberg’s atonal music and Mahler’s Sturm und Drang to Ludwig Wittgenstein’s philosophy. Those Viennese who escaped Nazism went on to sustain the West during the cold war, and to restore the traditions of empiricism and liberal democracy. ... This ferment was part of a generational revolution that swept Europe at the end of the 19th century, from Berlin to London. But the Viennese rebellion was more intense, and more wide-ranging. And it provoked a more extreme reaction. Hitler arrived in Vienna from the Austrian provinces in 1908 and developed his theories of race and power there. Vienna was thus the cradle of modernism and fascism, liberalism and totalitarianism: the currents that have shaped much of Western thought and politics since Vienna itself started to implode in 1916 until the present day. It has been the Viennese century. ... Amid a babble of peoples and languages—one in which, as elsewhere at the time, gender roles were being redefined—Viennese thinking was driven by an urge to find universal forms of communication. ... Often the Viennese intellectuals leapt ahead by transferring knowledge gained in one discipline to others, gloriously indifferent to the mind-forged manacles that have come to stifle modern academia and research. ... Von Mises and Hayek, one of his students, saw earlier than most that by the interwar years the liberal era in Europe was being overwhelmed by the collectivism and totalitarianism of the right and the left. They subsequently devoted their lives to reversing the tide. ... The Viennese school placed the lived experience of individuals—rather than the abstractions of class, race and nationalism favoured by their opponents—at the heart of their intellectual enterprises.