Money and Finance
- Links
Louis Hyman lecture on his book Borrow: The American Way of Debt [H/T Matt] (LINK) Brain Pickings discusses Atul Gawande's Being Mortal (LINK) Heather Capital: How a $600 Million Hedge Fund Disappeared (LINK) On-the-record remarks by Claudio...
- How Do You Say “minsky” In Mandarin? - By Christopher Pavese
Wikipedia defines a Minsky Moment as, “a sudden major collapse of asset values which is part of the credit cycle or business cycle. Such moments occur because long periods of prosperity and increasing value of investments lead to increasing speculation...
- Gmo White Paper: Feeding The Dragon: Why China's Credit System Looks Vulnerable - By Edward Chancellor And Mike Monnelly
The conventional view is that China’s economy has recently experienced a "soft landing" and is now poised for take-off. In this white paper, GMO’s Edward Chancellor and Mike Monnelly tell a rather different story, namely that the Chinese credit system...
- Richard Duncan Quotes
Longer excerpt from The New Depression (taken from my Kindle highlights, so the excerpts aren’t necessarily the paragraphs I have put them in below, and there may be things in between that I didn’t highlight).The quantity theory of money held that...
- Murray N. Rothbard On Forecasters And The Kondratieff Cycle (1984 Article)
At the end of Sprott’s latest commentary, they mentioned the Kondratieff Cycles, which I had never heard of. When I searched for more information, I came across a 1984 article from Murray Rothbard that discussed the topic and that I thought was interesting,...
Money and Finance
The real origins of boom and bust – By Edward Chancellor
Modern economists do not understand how finance shapes economic activity. They see money as an inert veil draped over the “real” economy. By contrast, in Victorian times the credit cycle was viewed as an essential characteristic of capitalism. Today, it is largely ignored. As a result, we have forgotten the basic law that every credit boom – including China’s current one – contains the seeds of its own demise.
Claudio Borio, director of research at the Bank for International Settlements, is a glorious exception to this rule. More than a decade ago, Mr Borio co-authored a paper pointing out that economic hard landings often followed periods of strong credit growth and house price inflation. His findings were roundly ignored. Last month, Mr Borio put forth another paper in which he reasserts the importance of finance in economics. “It is not possible,” he writes, “to understand business fluctuations, and the corresponding analytical and policy challenges, without understanding the financial cycle.”
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Related paper: The financial cycle and macroeconomics: What have we learnt?
- Links
Louis Hyman lecture on his book Borrow: The American Way of Debt [H/T Matt] (LINK) Brain Pickings discusses Atul Gawande's Being Mortal (LINK) Heather Capital: How a $600 Million Hedge Fund Disappeared (LINK) On-the-record remarks by Claudio...
- How Do You Say “minsky” In Mandarin? - By Christopher Pavese
Wikipedia defines a Minsky Moment as, “a sudden major collapse of asset values which is part of the credit cycle or business cycle. Such moments occur because long periods of prosperity and increasing value of investments lead to increasing speculation...
- Gmo White Paper: Feeding The Dragon: Why China's Credit System Looks Vulnerable - By Edward Chancellor And Mike Monnelly
The conventional view is that China’s economy has recently experienced a "soft landing" and is now poised for take-off. In this white paper, GMO’s Edward Chancellor and Mike Monnelly tell a rather different story, namely that the Chinese credit system...
- Richard Duncan Quotes
Longer excerpt from The New Depression (taken from my Kindle highlights, so the excerpts aren’t necessarily the paragraphs I have put them in below, and there may be things in between that I didn’t highlight).The quantity theory of money held that...
- Murray N. Rothbard On Forecasters And The Kondratieff Cycle (1984 Article)
At the end of Sprott’s latest commentary, they mentioned the Kondratieff Cycles, which I had never heard of. When I searched for more information, I came across a 1984 article from Murray Rothbard that discussed the topic and that I thought was interesting,...