Failure of the Experts has Lead to Fantasy Politics
The other day the Peterson Institute hosted a conference on “Rethinking Macroeconomic Policy“. The speakers were a veritable who’s who of the... Read More
Did Econ Nobel Winners Make Crisis Worse?
Regular readers know that financial crises take place in the Blind Betting quadrant of the Information Matrix. Information Matrix ... Read More
Paul Krugman Demonstrates Imperviousness of Economics to Change
The Great Financial Crisis should have been a great opportunity for the Economics profession. Not only to engage in a review of... Read More
Bank Runs, Sunspots and the Information Matrix
A couple of readers asked me if I was familiar with and what I thought about Douglas Diamond and Philip Dybvig’s Bank... Read More
Stanley Fischer’s Last Great Economics Lesson
With the announcement of his retirement as Fed Vice Chairman, I thought it would be interesting to browse through a few recent... Read More
Jackson Hole and the Information Matrix
As central bankers from around the world meet at their annual conference at Jackson Hole, a great deal of effort will go... Read More
Economists never learn: follow-up
I received significant feedback on my earlier post on why Economists never learn, particularly from someone without a PhD in Economics. This feedback... Read More
Economists never learn: bank capital
Previously I discussed how the Economics/Finance profession is incapable of learning anything from someone without an Economics/Finance PhD. As an example of... Read More
Can 1,000 Economics/Finance PhDs learn from a non-PhD?
It has become apparent Economics and Finance PhDs are the walking embodiment of Upton Sinclair’s observation: It is difficult to get a... Read More
Why do we need financial regulation at all?
In his speech, Hyun-Song Shin, the Head of Research for the BIS, asked “Why do we need financial regulation at all?”. This... Read More
The Information Matrix and Opacity
The Information Matrix makes it easy to understand why opacity is the necessary condition for a financial crisis. By definition, an opaque... Read More
Information Matrix Revisited
Having talked with several economists and finance professors, it is clear my presentation of the Information Matrix in Transparency Games and subsequently on... Read More
We are unlikely to spot the next financial crisis
In a moment of surprising honesty, Gertjan Vlieghe, a Bank of England monetary policy official, summarized the problems with even the fanciest economic... Read More
Fed Up: a brief book review
In her book, Fed Up: An insider’s take on why the Federal Reserve is bad for America, Danielle DiMartino Booth explains why... Read More
The crisis in economics
Since the Queen of England asked why the economics profession had not seen the financial crisis coming, the profession has been in... Read More