ALL BLOG POSTS
"Everything reminds Paul Krugman of the GOP. Everything reminds me of sex, but I try to keep it out of my papers."
This is Paul Krugman:
The ECB is very proud of its 2% inflation target. The problem is just that it is not hitting it.
The Melaschenko-Reynolds banking resolution model makes a lot of sense (damn that is not a sexy headline)
I recently bashed the Bank of International Settlements for having irrational bubble fears. That, however, do not mean that I think that BIS is making bad research. Rather I think that BIS comes out with a lot of interesting research. The latest BIS paper I have read is a paper by Paul Melaschenko and Noel Reynolds on banking resolution.
The rally in the global stock markets has clearly run into trouble in the last couple of weeks. Particularly the Nikkei has taken a beating, but also the US stock market has been under some pressure.
I am writing this sitting in Warsaw’s Chopin airport. Over the last decade I have spend more time in Chopin than in any other airport in the world. The airport has changed a lot over the years and the development in the airport in many ways seem to have tracked the development in the rest of the Polish economy.
Bank of Japan governor Kuroda came off to a good start when he announced his strategy for taking Japan out of 15 years in the beginning of April - the yen weakened, the Nikkei rallied and most importantly inflation expectations started to inch up. However, over the past two weeks Mr. Kuroda's efforts have run into trouble. The Nikkei has tumbled and fears that Mr. Kuroda will not be able to deliver on his promise to increase Japanese inflation to 2% have increased.
Peter Dorman has a blog post that have gotten quite a bit of attention in the blogosphere on the AS-AD model and why he thinks it is not a useful framework. This is Peter:
Yesterday I was surfing the internet for some information on events in 1937 - the year of the Recession in the Depression. While doing that I found a great lecture Scott Sumner did at Oxford Hayek Society in 2010.
This is from OECD's Economic Outlook report published earlier today:
US bond yields are spiking today. You might expect me to celebrate it and say this is great (while everybody else are freaking out...) Well, you are right - it doesn't worry me the least bit.