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
Great Liquidity Crisis Next Phase of Current Crisis
JP Morgan has already named the next phase of our current financial crisis. They call it the Great Liquidity Crisis. Their trigger... Read More
Transparency Continues to be Missing from Crisis Response
The ECB’s Draghi gave a speech in which he extolled the achievements of regulatory reform since the beginning of the Great Financial... Read More
Rating Firms and the Information Matrix
The Information Matrix can be used to examine the rating firms’ business model and the impact of the Transparency Label Initiative on... Read More
Did Lack of Transparency Cause the Financial Crisis?
The lack of transparency in the global financial system was and still is the necessary condition for a financial crisis to occur. By... 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
Fed confirms none are so blind as those whose job depends upon not seeing
Periodically I delude myself into thinking senior Fed officials/PhD economists actually understand how our financial system is designed and is suppose to... Read More
Yale’s reputation used to defend failed response to financial crisis
Several years ago, I coined the expression Opacity Protection Team as shorthand for all individuals and institutions that enabled Wall Street to... 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
The Information Matrix
As I was reading a Bloomberg column by Noah Smith, I was reminded of the simple fact the economics profession doesn’t fully... Read More