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Wednesday, August 24, 2016

Articles

Essays on modern monetary policy pt. 2: Ponzi schemes and Ricardian equivalence

Last week, I reiterated the immutable foundation of double-entry bookkeeping. For every financial asset there is a corresponding financial liability. But it may not be...

Essays on modern monetary policy pt. 1: The nonsense of “helicopter money”

This is the first of several essays on monetary policy. There is a priesthood which believes that money and finance are special, beyond the normal scope of logic, economic reasoning, or common sense, and full of arcane mysteries which can only be fully understood by those who have been fully initiated into the priesthood. In these essays I plan to debunk this idea.
Donald Trump

Donald Trump and Obliquity: A Recantation and Apology

Obliquity, the book which I wrote in 2010, developed the thesis that complex goals are often most effectively achieved when pursued indirectly. The great utilitarian,...

Hinkley Point: Another Brexit silver lining

For those looking for some silver lining from the Brexit outcome, there is the good news of the abolition of the Department for Energy...

Open end or closed end?

Within days of Britain’s EU referendum vote, the country’s largest property unit trusts had closed to redemptions and slashed their asset values, or both. The promise of easy redemption resembled the umbrella that is recalled when it begins to rain. Open-ended property funds are not fit for purpose as retail investment vehicles. Perhaps it is time to query the dominance of open-ended vehicles in the savings market more generally.

Yet another way we are cheating our grandchildren

Long term real interest rates are negative in Britain and in the Eurozone and barely positive in the United States. The impact on pension funding is dramatic.
Deutsche_Bank_logo

The problems at Deutsche Bank

Deutsche bank’s share price has fallen by more than half in the last year. For some insight into the background see these two extracts...

A setback to ‘capital markets union’ – a glimpse of silver lining in the...

Those who cannot remember the past are condemned to repeat it. -- George Santanyana First, a quiz: Match the three authors with the three quotations which follow ...
Creative Tension

Modern business, modern markets

Our markets need to adapt to the changed nature of 21st century business if they are to remain relevant in a world in which capitalism has little need of capital.

It’s not rocket science: What can we learn about business and finance from NASA’s...

What we learn about business and finance from NASA’s mission Juno to the planet Jupiter.