One of the persistent themes since 2008 is the theory that there has been excessive “asset price inflation”. I’ve talked about this quite a bit before, but it is worth [ … ]
Category: Macro Perspectives
Government Bond Markets Aren’t “Free” Markets
This is one of those posts that is operational in nature, but will sound political to some people. Before you send me a mean email please try not to politicize [ … ]
How Bond Vigilantes Really Think
Discussions on interest rates tend to fall into two camps – the state based view and the market based view. The state based view says that the government can always [ … ]
Passive Investing isn’t Hurting the Economy
The new sales pitch for the high fee active manager goes something like this: “passive investing has gotten so large that this creates greater opportunities for us to take advantage [ … ]
Why Has Heterodox Economics Become Orthodox on Wall Street?
I recently noted that heterodox economics is not so heterodox anymore.¹ There’s been a growing trend, especially on Wall Street, in the use of heterodox economic models and particularly Post-Keynesian [ … ]
“Heterodox” Economics is not so Heterodox Anymore
Noah Smith says that “heterodox” economics is occult (mystical) because someone in his Twitter feed was bothering him.¹ Noah also says there just isn’t any accessible research on heterodox economics.² [ … ]
Bernie Sanders and the Santa Claus Growth Plan
Drama. Major drama in political economics. In case you haven’t been paying attention: Gerald Friedman released some estimates about the Bernie Sanders growth plan with an expected 5.3% GDP. You [ … ]
We’re in Uncharted Waters
Last year I expressed the concern that the global economy of the future might be excessively influenced by a black box economy – China. But as 2016 has picked up the [ … ]
Fiscal Policy Has Failed the US Economy
The story of the post-crisis economic period is simple: The housing boom left the household sector mired in a deep debt hole. This was further exacerbated by the leverage Wall [ … ]