Noble Prize Winning Economist’s False Narrative About Financial Markets
According to David Warsh, a former Boston Globe columnist and now blogger, in August 2008 Bengt Holmström, a Nobel prize winning MIT... Read More
Economists Demonstrate Difficulty in Escaping Old Ideas
In his General Theory book, Keynes noted: The difficulty lies, not in the new ideas, but in escaping from the old ones.... Read More
The Information Matrix and the 2018 Nobel Symposium on Money and Banking
The Information Matrix was the uninvited guest that everyone wished attended the 2018 Nobel Symposium on Money and Banking. Thanks to John... Read More
Economics: The Gap between Brilliant and Useful
Nicholas Gruen, CEO of Lateral Economics, highlighted a major problem with Economics today while talking about Nobel prize winning Economist Paul Krugman: his... Read More
Credentials versus Expertise
Since 2008 when the Queen of England asked Economists (broadly defined to include finance professors) why they had not seen the financial... Read More
A Reassuring Lie
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When the Queen of England asked Economists (including finance professors too) in 2008 why they had failed to see the financial crisis... Read More
None are So Blind as Those Whose Finances Depends on Their Not Seeing
In 2009, I first used the term Opacity Protection Team to reference all the financial market participants who objected to the return... Read More
With Such Friends [as Academics], Who Needs Lobbyists?
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The title for this post comes from Stanford business school professor Anat Admati’s “It Takes a Village to Maintain a Dangerous Financial... Read More
Yale Professor: Basically You Don’t Understand the Crisis
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Yale professor Gary Gorton is the gift that keeps on giving. His latest gift was to inform a Wall Street journal reporter... Read More
PhD Economist Derp: Seeds for Next Financial Crisis being Planted
Having had the Queen of England point out they missed seeing the Great Financial Crisis coming, PhD Economists aren’t taking any chances... Read More
Macro Economics Confuses Correlation with Causation
It has become very clear macro economists confuse correlation with causation. Since it was first introduced by Keynes, macro economists have told... Read More
The Confident Idiots at the Fed and Bank Stress Tests
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Perhaps the single worst idea to emerge from the acute phase of the Great Financial Crisis was the public announcement of the... Read More
Figuring Out Where the Banks Fit In
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Tim Congdon, Chairman of the Institute of International Monetary Research, laid down the challenge for what the Economics profession needs to learn:... Read More
Pathology, Prophylactics and Palliatives
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Prospect Magazine asked a number of PhD Economists and Economic commentators what is the one lesson they wish Economists would learn. Imagine... Read More
PhD Economist Derp: Confident Idiots and Bank Capital Regulations
Since the Great Financial Crisis began in 2007, I have found myself having frequent exchanges with PhD Economists about transparency, how our... Read More