MARKETS
Popping
property bubbles: Choosing the right pin – The
Economist
The house
prices in Europe are losing touch with the reality
again
Global
property markets: Frothy again – The
Economist
Easy money
is inflating rices across much of the globe
What
"Smart Beta" Means to Us – Research
Affiliates
Emerging
Markets, BRICs Breaking Out of Sideways Range – Bespoke
Who's
afraid of the Big Bad Terrorist? – Humble
Student
Comparison
of market reactions to three terror attacks. Moral of the story: Don't just
react to headlines, focus on fundamentals.
A Few
Brief Comments on the Technical Condition of the Dollar – Marc
to Market
Worlds
Greatest (and Worst) Market Timer ® - The
Big Picture
ECONOMICS
Review:
A pained call for radical financial reform – Reuters
Financial
Times writer Martin Wolf’s new book is partly a cogent review of what went
wrong in the 2008 crisis. But the message economists and policymakers should
focus on, especially from a centrist intellectual, is that the best ideas for
the future are far from the mainstream.
Where
Danger Lurks – IMF
The recent
financial crisis has taught us to pay attention to dark corners, where the
economy can malfunction badly
IMF’s
Blanchard Sees Global Economy Too Close to ‘Dark Corners’ – BB
We are part
of an international system characterised by newly industrialised countries
pegging their currencies to the dollar at an undervalued exchange rate in
pursuit of export-led growth furnished by an excess supply of labour. Those
developing countries then ship their gains back to the US et al as a form of
collateral against new lending as the net foreign assets of poor countries
support the risks taken by their richer brethren.
Better
late than never, but early is better still – The Money Illusion
Money
hierarchy, the global perspective – FT
How To
Respond to Someone Screaming About “Money Printing” – PragCap
Nobel
laureates, halo effects and idiosyncratic markets – Coppola
Comment
Print
Less but Transfer More – Foreign
Affairs
Why Central
Banks Should Give Money Directly to the People
Peter
Diamond Thinks the Beveridge Curve Might Not Tell Us Much of Anything – WSJ
This
time is not that different, long-term unemployment edition – FT
The share
of long-term unemployed from this recession is about the same as in previous
recessions. About 10 per cent of men who are laid off en masse are never
employed again. Intriguingly, the overall health of the economy at the time of
getting laid off does not seem to play much of a role, although age does.
An
Economist Walks Into a Bar | Robert Litan | TEDxKC – Youtube
The
surprising role economists have played in the development of the internet
economy -- and quite possibly your love life.
Currency
Regimes, Capital Flows, and Crises – IMF
Journal
Krugman: Ever
since Greece experienced its debt crisis, fiscal discussion
has been “Hellenized” – that is, there are constant warnings that other
countries, including the United States, are on the verge of a similar
crisis. But can countries that borrow in their own currency experience
Greek-type crises? I argue, based both on evidence and on simple modeling, that
the answer is no.
http://www.palgrave-journals.com/imfer/journal/vaop/ncurrent/full/imfer20149a.html
Why we
need a fiscal backstop to the financial system – voxeu.org
In the
aftermath of the financial crisis, governments have been reducing their
potential exposures to the banking system. This column argues that a fiscal
backstop remains necessary for a banking system, contrary to what many
policymakers claim. The main reason is that private arrangements may not be
sufficient in a severe crisis. Without a credible backstop, depositors will run
on a troubled banking system.
Looming
Ahead – IMF
Finance
& Development, September 2014, Vol. 51, No. 3 * Five Nobel Prize winners
discuss what they each see as the biggest problem facing the global economy of
the future * Akerlof: global warming, Krugman: demand, Solow: growth, Spence: inclusiveness, Stiglitz: inequality
Structural
reform lowers country risk – voxeu.org
Countries
facing rising risk premiums on their debt have recognised the need for structural
reform, but some politicians have argued that austerity is necessary in the
short run because structural reform takes too long. This column argues that
financial markets can bring forward the benefits of structural reform, and
therefore that such reforms should be given greater weight in the package of
crisis responses.