by admin | Feb 5, 2013 | Uncategorized
Over the last few weeks a debate has broken out as to whether we are on the cusp of a great rotation into equities. Much of the focus of this debate has been trying to assess when yields on US Treasuries will start to rise, thus causing investors to shift their assets...
by admin | Feb 4, 2013 | Uncategorized
A recent debate on the merits of NGDP targeting between Scott Sumner and Charles Goodhart has opened up an interesting discussion as to what bond investors should care about – inflation or the level of NGDP. Goodhart argued in the FT that the “likely implications of a...
by admin | Jan 9, 2013 | Uncategorized
Most investors got caught out by the last monetary policy fad by using the level of inflation as a proxy for asset price sustainability and lost a great deal of money. As a result many economists have become critical of the utility of inflation targeting. But will the next big idea be any different? The next big thing in monetary economics may well be for central banks to target nominal GDP. Unfortunately “the next big thing” in monetary economics does not have a very good track record.
by admin | Nov 15, 2012 | Uncategorized
Gavyn Davies’s article is an interesting attempt to explain why the UK recovery remains so weak. This analysis is also very timely given the recent prognosis by the governor of the Bank of England of sluggish growth and high inflation. One aspect that Gavyn Davies has...
by admin | Sep 25, 2012 | Uncategorized
A sectoral analysis of the UK economy provides more granular evidence that Ben Broadbent’s assumption of labour hoarding and lower productivity growth currently impacting the UK economy is the most plausible explanation of the breakdown between rising employment and...
by admin | Aug 31, 2012 | Uncategorized
See link to John Cochrane’s excellent response to Gordon’s recent paper. http://johnhcochrane.blogspot.co.uk/2012/08/gordon-on-growth.html In particular: ‘My impression of modern growth theory is that the economics of innovation production and...
