While employment creation is back to normal and unemployment has fallen to levels at which wage inflation tends to pick up, there is no sign of the latter happening. This great wage moderation, while actually not a new phenomenon, is still confounding macro-economists as well as the Fed’s monetary policy making. We’ll look at some […]
Entries Tagged as 'Economics'
May 24th, 2015 · Comments Off on The Great Wage Moderation, A Primer | Seeking Alpha
November 27th, 2014 · Comments Off on Currency Debasement?
Real rates have declined almost everywhere in the developed world, the savings glut doesn’t turn into an investment glut. The result is excess capacity, slow growth and underperforming economies. How can this be turned around? If desired savings and investment can equate only at deeply negative real rate, higher inflation targets are one logical solution […]
August 27th, 2014 · Comments Off on Secular Stagnation and Asset Prices
There is a lot of confusion what secular stagnation really means; here is a quick introduction and scheme. We look at what impact secular stagnation has on asset prices. Secular stagnation has likely been beneficial for both bonds and stocks, but at the cost of greater financial instability. Secular Stagnation Effects On Financial Markets | […]
August 25th, 2014 · Comments Off on Keynesian versus supply-side economics
In the battle of economic ideas, one that has been raging for nearly four decades is that between supply-siders and Keynesians. While we think some supply-side measures can be useful, one really has to be specific as to the kind of measures and expected effects, it’s all in the details. A general supply-side approach seems […]
August 24th, 2014 · Comments Off on Bond markets versus Peter Schiff
Some market observers like Peter Schiff have warned us that many markets and even the whole economy are kept up by asset purchases by the Fed. So we should expect the recovery to stall, the dollar, stocks and bonds to fall when the Fed stops these purchases. Not only is this not happening, some of […]
March 16th, 2014 · Comments Off on We’re terrible at assessing risk
the increase in car travel stemming from people’s fear of air travel directly after 9/11 likely led to an increase in traffic fatalities measured in the thousands, and possibly more than the number of actual 9/11 victims. via We’re terrible at assessing risk.
November 7th, 2013 · Comments Off on Austrian Economics Recipe For Disaster
Austrian economists like Peter Schiff and Jim Grant propose non-intervention combined with a return to the Gold Standard as a solution for the economic crisis. This is basically the recipe that has been let loose on the eurozone periphery via Austrian Economics Recipe For Disaster – Seeking Alpha.
October 12th, 2013 · Comments Off on Hahaha!
It was quite uncalled for to point out that Italy’s debt ratio has jumped to 130pc of GDP, or to so suggest that debt cannot keep rising on a contracting nominal GDP base, and I will wash my mouth soap if I ever utter the words “denominator effect” again. via Hahaha!.
October 12th, 2013 · Comments Off on What Exactly Is So Objectionable About Obamacare? – Seeking Alpha
We don’t want to meddle into domestic policy debates, but now that these are threatening economies and investment portfolios worldwide, outside observers and investors have a right to ask some questions. What is so objectionable about Obamacare that some of the critics want to shut it down no matter what? We have a hard time […]
October 9th, 2013 · Comments Off on The Keynesian Slump – Seeking Alpha
Well the latter is obviously not happening, for whatever reason, there remains ample slack in the economy in terms of unused production capacity and unemployed and underemployed workers. An Associated Press analysis of households in the 10 biggest economies shows why, and their findings are confirming the Keynesian story. via The Keynesian Slump – Seeking […]