Economics – orthodox and heterodox
byIn 2008 as The Great Moderation came to an end, Queen Elizabeth II asked Mervyn King “Why did no-one see this coming?” Her Majesty…
Economics
Cooperation between central banks
byZerohedge recently drew attention to the growing level of foreign bank cash deposits, tucked away at the bottom of the Fed’s H.8 statement. Foreign banks’…
Where she stops nobody knows
by“No warning can save people determined to grow suddenly rich.” – Lord Overstone. We have seen a confluence of events that suggests we may…
Output gaps and heterogeneity
byWhat shape is the Short Run Aggregate Supply (SRAS) curve? The question might sound tediously esoteric but it is, in fact, central to current…
Bubbles and central banks – is there a connection?
byAccording to the popular way of thinking, bubbles are an important cause of economic recessions. The main question posed by experts is how one…
There’s a liquidity crunch developing
byThis week an article in Euromoney points out that liquidity in bond markets is drying up. The blame is laid at the door of regulations designed…
Dear George
byDear George, No purple prose this time, I promise – I wouldn’t dream of risking any untoward interruption of your natural digestive processes –…
Finland’s gold
byOn Wednesday Finland gave in to public pressure and revealed where she stores her gold reserves. The statement followed a press release by the…
Debt limit nonsense
bySome things are stated as fact which are nothing of the kind. Right up until the Congressional deal raising the debt ceiling news anchors…
The adverse effects of monetary stimulation
byA number of people have asked me to expand on how the rapid expansion of money supply leads to an effect the opposite of…