Ally Bank – Predicting Savings Rates

In this commercial for Ally Bank, Nobel Laureate Thomas Sargent is asked to predict what CD rates will be in two years—and is unable to do so. If he can’t do it, no one can. It’s a great opportunity to teach about risk sharing and diversification.

Ally Bank — Pony Commercial

This commercial is a great opening piece to talk about the differences between equity and efficiency. While both young girls are better off that before (efficiency improvements), they are not relatively better off because one is getting an actual pony (equity issues). One of the hard portions of this concept is to think about this issue as a true tradeoffs that efficiency gains often come at the cost of decreased equity. This increase in inequality between the two girls may be a nice, short way of demonstrating that tradeoff.

Up ↑