In economics, you are what you model – Economix
The EU’s cure-all cured nothing: Why Germany’s medicine is killing Europe – Matthew O’Brien
Do the “Big Four” Australasian banks require special regulation? – The Australia-New Zealand Shadow Financial Regulatory Committee
Our faith is fraying in the god of money – Margaret Atwood
Regulators should encourage more diversity in the financial system – Charles Goodhart and Wolf Wagner
Does high-frequency trading alter commodity prices? – David Bicchetti and Nicolas Maystre
Can securitization live with Volcker? – Dealbook
Limits to currency momentum trading – Lukas Menkhoff, Lucio Sarno, Maik Schmeling and Andreas Schrimpf
Trading by bank insiders before and during the financial crisis – Peter Cziraki
China pulls rug from under the Aussie – Nicholas Hastings
Did affordable housing legislation contribute to the sub-prime securities boom? – Rubén Hernández-Murillo, Andra C. Ghent and Michael T. Owyang
The dangers of our new regulation – Peter Sands
The synchronized and long-lasting structural change on commodity markets: Evidence from high frequency data – David Bicchetti and Nicolas Maystre
Do stocks always outperform (in the long run)? - The Psy-Fi Blog
What is the real rate of interest telling us? – Martin Wolfe
Transparency, liquidity & valuation - Mark Lang, Karl Lins and Mark Maffett
Stop letting economists off the hook – Philip Soos
Capital shortfall: a new approach to ranking and regulating systemic risks - Viral Acharya, Robert Engle and Matthew Richardson
Accounting disclosure: adding… – FT Lex
Accounting disclosure: …and subtracting – FT Lex
Towards a common financial language – Andrew Haldane
Shadow banking and financial instability – Adair Turner
Genes and investing: natural stock selection – The Economist
A comprehensive look at financial volatility prediction by economic variables by Charlotte Christiansen, Maik Schmeling and Andreas Schrimpf
The age of authoritarian democracy by Sergei Karaganov
Credit Suisse to use ‘cocos’ to raise SFr250m – Financial Times
Meeting of central bankers, “Godfather” style – Themis Trading
Economics in the crisis – Paul Krugman
The financial crisis and the pricing of interest rates in the Irish mortgage market: 2003-2011 – Jean Goggin, Sarah Holton, Jane Kelly, Reamonn Lydon and Kieran McQuinn
Regulators consider LIBOR overhaul – Financial Times
Superfast traders feel heat as bourses act – Financial Times
Mood swings and the market: how to understand irrational investor behaviour – Paul Kofman
Gold and the international monetary system – Chatham House Gold Taskforce
Why Porter’s model no longer works – Nilofer Merchant
Macroprudential policy in Ireland - Stefan Gerlach
Investing for the long run – Andrew Ang and Knut N. Kjaer
Good regulation needs to fix the broken incentives – Martin Čihák, Asli Demirgüç-Kunt, and R. Barry Johnston
Debt and creative destruction: why could subsidizing corporate debt be optimal? – Zhiguo Hey and Gregor Matvosz
I had a typically rambling discussion with a taxi driver today about cloud computing, the viability of Obama’s tax plans, Dublin’s former cattle marts, and negative equity carries. At some point, he told me an all-too-familiar tale-of-woe about a friend of his who had bought an investment property well outside of Dublin and who was now paying for more than half of the mortgage on the place. As the driver then explained, “its only worth half the price he bought it for… assuming someone was prepared to buy it.” And therein lies the rub! Because if there are no buyers at half the price, then it is worth something less again.
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The increase in household debt prior to the crisis is not a moral issue – Mark Thoma
Economics and the brain: how people really make decisions – Paul Harrison
How to reduce the deductibility of interest payments – Felix Salmon
The doom loop – Andrew Haldane
The liquidity trap and all that… – Philip Pilkington
Fiscal policy during the Great Depression – Brad DeLong
Good and bad deficits – Robert Skidelsky
…sometimes, Clov, you must learn to suffer better than that if you want them to weary of punishing you…
Endgame – Samuel Beckett
Below are excerpts from three complementary pieces regarding the long foreseen failure of the policies of austerity in Greece. For the curious, the headings refer to the Three Fates of Greek mythology whose job it was to spin, measure, and cut the thread of life.
Clotho – The Things That Were
Whatever the political consequences, every sensible financial commentator understands that the Greek economy can take no more. The “bailout” will merely push it deeper into the mire. The EU’s terms do not begin to match the altruism the United States showed to the defeated Germans after 1945. America did not pauperise West Germans as many in France and indeed Washington wanted. America guaranteed their security, then gave them loans from the Marshall Plan that allowed the West German economic miracle to begin. Greece has invaded no one and committed no crimes against humanity. Yet the EU, which boasts that solidarity is its founding principle, is forcing it into destitution and chaos.
The death of the peak oil hypothesis – Citigroup Global Markets
Tobin trouble – Mark Roe
Capital shrugged – Mark Spitznagel
Eurozone central bankers and the taboo subject of losses – Gillian Tett
Investor inattention during FIFA World Cup matches – Michael Ehrmann and David-Jan Jansen
Why economists are right: rational expectations and the uncertainty principle in economics – part 1 – David K. Levine
Why economists are right: rational expectations and the uncertainty principle in economics – part 2 – David K. Levine
David K. Levine is totally wrong on the rational expectations hypothesis – Lars Pålsson Syll
How markets become efficient (answer: they don’t) – Mark Buchanan
Financial black swans driven by ultrafast machine ecology - Neil Johnson, Guannan Zhao, Eric Hunsader, Jing Meng, Amith Ravindar, Spencer Carran, and Brian Tivnan
Questioning long-term currency hedges – Alen Mattich
