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:
ECONOMICS
Current-account imbalances: Less skewed – The
Economist
Economist Identifies Best Measure of Global
Economic Activity – WSJ
Great Graphic:
International Comparison: Composite PMI Readings – Marc
to Market
How I learned to stop worrying and love the
bubble – alphaville
/ 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 economy – ECB (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 Economies – EconoMonitor
Fighting the Last War
is Not a Path to Success
Introducing the UBS Center – Esoltas
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 Program – Noahpinion
Book Bits | 9.28.13 – The
Capital Spectator
FISCAL
Austerity, growth and being economical with the
truth – Mainly
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
doubts – The
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
Limit – The
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 Austerity – Krugman
/ NYT
Sound bite economics – mainly
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 BIS – qfinance
MONETARY
The politics of
quantitative easing: ‘recovery’ through regressive redistribution – SPERI
Neoliberal crisis responses in the Anglo-American economies have
deepened inequality and divided society
Buiter on forward guidance, or, paging Sumner
/ Krugman / Woodford / Eggertsson / Svensson – alphaville
/ FT
The "setting the mood" approach to
monetary policy – The
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.
MARKETS
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 volume – TradingFloor
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 Mihaljevic – Turnkey
Analyst
Understanding Risk: The Role of Bonds – A
Dash of Insight
Above the noise: Equities long-term beats bonds
by a distance – TradingFloor
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 information – Felix
Salmon / Reuters
Things Traders Say, ICAP Edition – DealBook
/ NYT
Research Review | 9.26.13 | Risk Analysis – The
Capital Spectator
HEDGE FUNDS – Place your advertisement HERE – alphaville
/ FT
Hedge funds associated
with advertising mutual funds enjoy moderately higher inflows than their
non-advertising counterparts, and subpar-returns
Information, Beliefs, and Trading – Rajiv
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
OFF-TOPIC
Selling citizenship: Hard-up countries flog
passports – The
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.
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” school – The
Economist
The best show on
television is also a first-rate primer on business
Electronic Dance Music’s Love Affair With
Ecstasy – The
Atlantic
How both the drugs and
the music have evolved together.
Forget good cop, bad cop - the real psychology
of two-person interrogation – BPS
100 Diagrams That Changed the World – Brain
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 Born – brain
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
World – Twisted
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 Sleep – Bakadesuyo
FINNISH
Suomen
käsittämätön talouspolitiikka – Henri
Myllyniemi / US Puheenvuoro
Nordean
pääkonttori Helsinkiin? – Verkkouutiset
Elinkeinoelämän
synkistely jatkuu – Verkkouutiset
Oikeistolaista,
kansallismielistä puoluetta etsimässä – Löytyykö sellaista? – Tyhmyri
Politiikan
sekahaku – EVA
(pdf)
Nämä
erottavat kokoomuslaisia muista - tämän vuoksi "tuskallisen vaikeaa" – Verkkouutiset
Pennejä
taivaasta – Pauli
Vahtera / IL
Saksan satumaan vaalitulos – TalSa
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
löytyy – Tyhmyri
Julkisen vallan käyttäjät – opas julkisen valinnan
teoriaan – Libera
(pdf)
Eamonn
Butlerin kirjan suomennos.