Previously on MoreLiver’s:
ECONOMICS
Why central banks should take charge of their
digital currencies
– alphaville
/ FT
The mobile
money/virtual currency arena is getting more and more crowded. And the question
remains: will the concept ever gain the critical mass needed to become the next
big thing in finance?
Central banks: Brave new words – The
Economist
Blogs review: The safe asset shortage – bruegel
Safe debts
– or what is often called information insensitive assets, as they do not suffer
from the types of financial frictions that are characteristic to other
financial assets – play a major role in facilitating transactions for
institutional investors. And, as we have learned in the recent years, they also
play a major role in triggering financial crises when they loose their safety
status and turn into information sensitive assets. As central bankers start
backpedalling on their commitments to increase the supply of safe assets and
start worrying about the negative effects of the “search for yield”, there has
been a renewed discussion in the blogosphere about the role of safe assets and
whether they remain in short supply.
Multipliers When Last the Zero Lower Bound ...
Bound – econbrowser
Empirical
evidence on inter-war multipliers
Data, Stimulus, and Human Nature – Krugman
/ NYT
So yes, it
has been disappointing to see so many people sticking to their positions on
fiscal policy despite overwhelming evidence that those positions are wrong. But
the fault lies not in our data, but in ourselves.
Fiscal stimulus in times of high debt:
reconsidering multipliers and twin deficits – ECB (pdf)
Global Dynamics at the Zero Lower Bound – FED (pdf)
What would Hayek do to sort out this mess? – LSE
In this
lecture, Hayek biographer Dr Eamonn Butler of the Adam Smith Institute explains
Hayek's view that a prosperous economy and a creative society are better
achieved by individual freedom than by state planning.
The End of Growth Wouldn't Be the End of
Capitalism – The
Atlantic
With the U.S., Japan, and Europe facing lost decades and hundreds of
millions of frustrated middle-class workers, it's worth asking: How much does
capitalism need growth to survive?
Why do large movements in exchange rates have
small effects on international prices? – voxeu.org
Why is it
that large movements in exchange rates have small effects on international
prices? What does this mean for a crisis-stricken Eurozone? Using firm-level
data, this column presents new research that investigates this exchange rate
‘disconnect’. Evidence suggests that the prices of the largest firms – with
their disproportionately large share of trade – are insulated from exchange
rate movements. The international competitiveness effects of a euro devaluation
are therefore likely to be modest, given major exporters’ reliance on global
supply chains.
The Rise of the Robots – Project
Syndicate
Robert
Skidelsky : Sooner or later, the nineteenth-century Luddites will be proved
right: automation will cause us to run out of jobs – a prospect that for some
countries might be uncomfortably close. So, what are people to do if machines
can do all (or most of) their work?
Skidelsky on robots and more leisure – alphaville
/ FT
Love him or
loathe him, Robert Skidelsky’s prose always makes for a good read.
His latest
offering comes by way of Project Syndicate and relates to the issue of robots
and the rise of automation. To what degree are we really approaching a leisure
society and how best to respond to the changes afoot?
How Paul Krugman
broke a Wikipedia page on economics – Salon
An "edit war" breaks out over the Nobel
Prize-winner's critique of ultra-conservative Austrian economics
Edward Hadas: Central banks are globalisation’s
new enemy – Reuters
Globalisation
is gaining ground almost everywhere in the economy. Central banks are a
dangerous exception.
Booms and systemic banking crises – ECB (pdf)
The Pareto Economy – of
two minds
The Pareto
distribution suggests that costs could be cut by 80% across the entire economy.
A real model of Minsky – Physics
of Finance
You Must Make the New Machines – MIT
Technology Review
Economist
Ricardo Hausmann says the U.S. has a chance to invent the
manufacturing technology of tomorrow.
REGULATION
The Real Problem with
the Big Banks – The
New Yorker
Seven Lessons from Finance as a Traffic System – re-define
Financial Regulators’ Global Variety Show – Project
Syndicate
I have
decided to experiment here with this post, creating a topical index or table of
contents for posts which I feel are worth saving and rereading.
Weekend Lecture: In Conversation with Daniel
Kahneman – Global
Macro Monitor
3 Principles of the diligent contrarians – Trader Habits
Article
summarizes several hypotheses advanced to explain the persistent low volatility
anomaly, reviews the performance of low volatility strategies in up and down
markets, and shows how adding a low volatility component can reshape a
portfolio’s risk–return profile.
Visualizing Bob
Farrell's 10 Investing Rules – Streettalk
Advisors
How To Get A Hedge Fund Job – Mebane
Faber
The Holy Grail For Monitoring Your Portfolio – The
Capital Spectator
Avoiding Mistakes in Hedge Funds: Lessons
Learned From Blowups & Frauds – market
folly
Smaller Hedge Fund Managers Outperform – All
About Alpha
A study of nearly
3,000 equity long/short hedge funds