Please fasten your seatbelt and try to beat the market
Scott Sumner and other Market Monetarists (including myself) favour the use of NGDP futures to guide monetary policy. Other than being forward-looking a policy based on market information ensures that...
View ArticleWhy did the A’s stop winning? Scott has the answer
I have been watching Moneyball. It is a great movie, but unlike Scott Sumner and my wife I have actually no clue about movies. However, economics play a huge role in this movie. So that surely made me...
View ArticleLong and variable leads and lags
Scott Sumner yesterday posted a excellent overview of some key Market Monetarist positions. I initially thought I would also write a comment on what I think is the main positions of Market Monetarism...
View ArticleExpectations and the transmission mechanism – why didn’t anybody think of...
As I was writing my recent post on the discussion of the importance of expectations in the lead-lag structure in the monetary transmission mechanism I came think that is really somewhat odd how little...
View ArticleChuck Norris just pushed S&P500 above 1400
Today S&P500 closed above 1400 for the first time since June 2008. Hence, the US stock market is now well above the levels when Lehman Brothers collapsed in October 2008. So in terms of the US...
View ArticleUnderstanding financial markets with MV=PY – a look at the bond market
Recently I have been thinking whether it would be possible to understand all financial market price action through the lens of the equation of exchange – MV=PY. In post I take a look at the bond...
View ArticleForget about those black swans
It has become highly fashionable to talk about “black swans” since the crisis began in 2008 and now even Scott Sumner talks about it in his recent post “Don’t forget about those black swans”. Ok, Scott...
View ArticleDid Casey Mulligan ever spend any time in the real world?
University of Chicago economics professor Casey Mulligan has a new comment on Economix. In his post “Who cares about Fed funds?” Mulligan has the following remarkable quote: “New research confirms that...
View ArticleThe Crowd: “Lars, you are fat!”
On Friday I was doing a presentation on the global economy (yes, yes mainly on global monetary policy) for 40-50 colleagues who are working as investment advisors in the Danske Bank group. As I was...
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