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Saturday, September 28

28th Sep - Weekender: Econ, Markets, Off-topic, Finnish

The good old debate on austerity is still going strong. Monetary policy is also questioned as the move from quantitative easing toward forward guidance is a recent trend by the US and UK.

Previously on MoreLiver’s:

Current-account imbalances: Less skewedThe Economist
Global trade imbalances: Fiddling the dataThe Economist

Economist Identifies Best Measure of Global Economic ActivityWSJ
Great Graphic: International Comparison: Composite PMI ReadingsMarc to Market

How I learned to stop worrying and love the bubblealphaville / FT
Bubbles may increasingly be coming to our rescue by inadvertently propping up our economy in a way that usually boosts employment.

Sudden stop of capital flows and the consequences for the banking sector and the real economyECB (pdf)

Is The BIS Working to Cartelize the Banking World?All About Alpha
One of the insights of public choice theorists is that government agencies (within whose ranks we may include, for purposes of this discussion, government-recognized central banks) are generally inclined to cartelize the industries they regulate. (see also Felix Salmon)

The Stubborn Slump in Advanced EconomiesEconoMonitor
Fighting the Last War is Not a Path to Success

Introducing the UBS CenterEsoltas
The University of Zurich and UBS somehow launched a major new academic center for the study of economics, brought in top names to speak at their event, and then told nobody.

The Complete Guide to Getting Into an Economics PhD ProgramNoahpinion

Book Bits | 9.28.13The Capital Spectator

Austerity, growth and being economical with the truthMainly Macro
We may pretend to believe that all politicians lie through their teeth all the time, but actually we do expect people like the UK or German finance ministers to avoid talking economic nonsense. At the very least we expect their civil servants to stop them saying things that are nonsense. Well not this time. But there are limits to what politicians can get away with.  The interesting question is what those limits are, and what governs those limits.

Schools brief: Stimulus v austerity – Sovereign doubtsThe Economist

The scandal of the austerity deception mainly macro

What’s It All About Then Krugman / NYT

The Real Reason for the Fight over the Debt LimitThe Fiscal Times
Support among the politically powerful elite for the risk sharing that makes social insurance work has declined.

The Depressed Economy Is All About AusterityKrugman / NYT

Sound bite economicsmainly macro
But the Chancellor knows he does not need to address these arguments. Instead, if he keeps on repeating that rapid growth shows critics of austerity are wrong, he will get away with it.

Longevity risk could compound state debts says BISqfinance

The politics of quantitative easing: ‘recovery’ through regressive redistributionSPERI
Neoliberal crisis responses in the Anglo-American economies have deepened inequality and divided society

Buiter on forward guidance, or, paging Sumner / Krugman / Woodford / Eggertsson / Svenssonalphaville / FT

The "setting the mood" approach to monetary policyThe Economist
My sense is that what the Fed should do is target the trend path for a nominal variable that minimises the consumer experience "weak job market". I think a nominal GDP level target accomplishes that.

The Case for Systematic Decision-Making Turnkey Analyst
Experts are extremely value in our society. In fact, experts are critical…Experts need to design the models, but COMPUTERS NEED TO IMPLEMENT THE MODEL.

Why rolling an open interest trumps volumeTradingFloor
Most futures traders roll their positions when the open interest in a new contract becomes higher. Why don't they just stick with the contract that has the highest volume?

Investing Book Review: “The Manual of Ideas,” by John MihaljevicTurnkey Analyst

Understanding Risk: The Role of BondsA Dash of Insight

Above the noise: Equities long-term beats bonds by a distanceTradingFloor
Peter Garnry: Based on the historical equity-risk premium, equities should outperform bonds by a wide margin over the coming years as the economy and financial markets normalise. The relative upside for equities is a staggering 57 percent.

Inter-dealer brokers’ inside informationFelix Salmon / Reuters
Things Traders Say, ICAP EditionDealBook / NYT

Research Review | 9.26.13 | Risk AnalysisThe Capital Spectator

HEDGE FUNDS – Place your advertisement HEREalphaville / FT
Hedge funds associated with advertising mutual funds enjoy moderately higher inflows than their non-advertising counterparts, and subpar-returns

Information, Beliefs, and TradingRajiv Sethi

Former senior MD (quant): 'Trading is no longer a balls job, it's a brains job'The Guardian
Today's interviewee – a quant, or maths 'genius', who worked at managing director level, says bankers are not self-serving idiots

Selling citizenship: Hard-up countries flog passportsThe Economist
In times of austerity, travel documents come cheap. Portugal is the latest of several European countries to start selling visas to foreign investors; others are slashing their prices.

Hannibal Lecter's Guide To The 'Goldberg Variations'deceptive cadence
Perhaps the most famous cinematic Goldberg moment is in Silence of the Lambs: Hannibal Lecter, chewing the face off one of his prison guards to the strains of the Aria. This use of is — depending on your point of view — either a stroke of genius or an act of cultural cannibalism. Admittedly, it's vivid, certainly one of the best face-chewing scenes I can think of.

Schumpeter: The “Breaking Bad” schoolThe Economist
The best show on television is also a first-rate primer on business

A bachelor’s degree could cost $10,000 — total. Here’s how.Wonkblog / WP

Electronic Dance Music’s Love Affair With EcstasyThe Atlantic
How both the drugs and the music have evolved together.

Forget good cop, bad cop - the real psychology of two-person interrogationBPS

100 Diagrams That Changed the WorldBrain Pickings
A visual history of human sensemaking, from cave paintings to the world wide web.

Bad Journalism, Existential Guilt, and the Business of Dynamite: The Surprising Story of How the Nobel Prize Was Bornbrain pickings

What happens when you ask over 15k people to name the best book they’ve read this year?Farnam Street

40 Maps That Will Help You Make Sense of the WorldTwisted Shifter

Rumsfeld Interview: 'A Leader Should Be Careful about Drawing Red Lines'Spiegel
Donald Rumsfeld is no stranger to intervening abroad. In an interview with SPIEGEL, the former US secretary of defense explains why Obama was right to delay military action in Syria and why the president must be wary of Russian President Putin.

4 Things Astronauts Can Teach You About A Good Night’s SleepBakadesuyo

Suomen käsittämätön talouspolitiikkaHenri Myllyniemi / US Puheenvuoro

Nordean pääkonttori Helsinkiin?Verkkouutiset

Elinkeinoelämän synkistely jatkuuVerkkouutiset

Oikeistolaista, kansallismielistä puoluetta etsimässä – Löytyykö sellaista?Tyhmyri

Politiikan sekahakuEVA (pdf)
Nämä erottavat kokoomuslaisia muista - tämän vuoksi "tuskallisen vaikeaa"Verkkouutiset

Pennejä taivaastaPauli Vahtera / IL

Saksan satumaan vaalitulosTalSa
Saksan vaalitaistelussa heijastui se, että Saksalla on mennyt taloudellisesti jopa satumaisen hyvin. Angela Merkel korosti vaalipuheissaan, että sama meno jatkuisi hänen seuraavallakin kaudellaan.

Kuinka julkista sektoria pienennetään nopeasti ilman negatiivisia vaikutuksia – se on helppoa jos poliittista tahtoa löytyyTyhmyri

Julkisen vallan käyttäjät – opas julkisen valinnan teoriaanLibera (pdf)
Eamonn Butlerin kirjan suomennos.