Economics

Central Banks and Stability

I post a lot of Macro materials (even though I am not a macro economist), but here is another article I found interesting. From the Financial Times (click title for link): Are central banks a destabilising force? Also found here, courtesy of FT: http://www.ft.com/cms/s/0/5556dbf4-9f0d-11e4-ba25-00144feab7de.html#ixzz3PNbjBCGC Swiss example shows how imbalances can correct violently ©AFP It may be a mistake to think the SNB’s… Read more →

John Cochrane on Inflation

John Cochrane’s op-ed in the WSJ, with a link here to the WSJ original and a link here to his blog, The Grumpy Economist. First, I confess I am not a macro-economist (worse yet, I confess that the training I received in macro-economics was rather basic).  The conversation around inflation has baffled me for some time, and I think there… Read more →

The 2014 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel

… Goes to Jean Tirole, whom I have referenced in my own research, and whom I think was an interesting (timely?) choice for the prize.  His research is precise, and covers industrial organization, markets, and regulation.  He has also written and co-written some excellent advanced text books. I look forward to hearing more from him over the coming years. Read more →

Economics to non-economists, Part I

Here is some confusion for thought… Click here for the original. Economists are not Like Physicists By Cullen Roche · Sunday, June 1st, 2014 There’s been some debate in economist circles about how to improve the field and apply a more empirical approach.  For instance, Noah Smith says: “what I actually propose is to create an econ “lab sequence” just for empirics, similar to what they… Read more →

Asymmetric Information, Incentive Compatibility, and Participation

From the Wall Street Journal, May 12, 2014: How to Trap the Guilty and the Gullible, by  Steven Levitt and Stephen Dubner (you may recognize them at the Freakonomics authors). The economics of information are fascinating, particularly because many managers forget that information asymmetries create incentive disparities between principals and agents.  Revealing these is tricky, but much less expensive than… Read more →

Part 1: I can make up numbers too…

It seems like there is a lot of bullshit spewing from the lips of government interpreters.  Not just at selfie-opportunistic funerals, where the interpreters are invited to conduct interpretive dance, but coming from the very government departments responsible for providing timely and accurate data.  Full disclosure: I frequently rely on government data in my research and work (did you think… Read more →

Wealth Confiscation

Below is an article from Noureddine Krichene, posted in the Asia Times: Usury in the USA.  First, some edification and background: It is a glaring reminder that wealth confiscation in the United States is publicly yet surreptitiously being conducted all around us.  Neo-Keynesianism is such an easy and politically convenient philosophy because it requires neither intelligent thought nor careful planning to be… Read more →

From Alan Greenspan: How to Avoid Another Global Financial Crisis

Find the original here: The American I find this discussion of rational and nonrational market behavior – animal spirits – very interesting.  His article also illuminates how he ran the Fed over almost two decades.  He concludes by pointing out that as the Standard Deviation of stock prices increases, so bubbles become more prominent.  I have seen some chatter of… Read more →

From Monty Pelerin: How to Identify an Economic Zombie

Find the original here: How to Identify an Economic Zombie. This post is relatively oversimplified, but I think it captures the bullshit espoused by the neo-Keynesians, such as former economist Paul Krugman, and the nonsense inherent in the progressive, neo-liberal mindset that eternal deficits won’t have any negative long-term impacts on main street.  The permanent inter-temporal dislocation of consumption essentially… Read more →