ALL BLOG POSTS
A friend wrote this on Facebook (I paraphrased it slightly):
My three year old son Mathias had an accident in his kindergarden the other day. He fell from a tall chair and as a result hurt is lip so his mom had to take him to the emergency room.
Among 'internet Austrians' there is an idea that there is gigantic bubble in the global bond markets and when this bubble bursts then the world will come to an end (again...).
Bitcoin has been one of the most talked about talked topics over the past year. Despite of this there is relatively little economic research that has been done on the topic so far. However, a new working paper by William Luther and Josiah Olson add important insight to the economics of bitcoin.
For the first time in a couple of weeks I have felt kind of optimistic today. It might actually be that the Federal Reserve and the Bank of Japan will not repeat the mistakes of 1937 - at least I am hopefully we have learned something from 1937.
This morning the Nikkei index has dropped has much as 6%. By any measure this is an extreme drop in stock prices in one day. Furthermore, we are now officially in bear market territory as the Nikkei is down more than 20% in just three weeks. I can only see one reason for this and one reason only and that is the breakdown of the credibility of Bank of Japan governor Kuroda and his commitment to fulfill his official 2% inflation target.
For somewhat more than a decade I have regularly been watching monetary policy decisions from different central banks around the world. Most 'modern' central banks in the world announce changes to monetary policy once every month. Mostly these events are pretty much none-events - the central banks do not surprise markets much. However, over the last fives years it has certainly been harder to predict the outcome of these meetings compared to how relatively easy it was in the decade before the crisis.
Scott Sumner has an interesting new post in which he argues that Utah is "America's Denmark". I like Scott's theory a lot. Mostly because I think of Utah is how Denmark used to be. I really don't like to write about Denmark, but this topic is too interesting to miss.