This week we ask if the wobble experienced by UK pension funds, last week, was just the canary in the gold mine for the global economy. If not for other central banks then this was certainly a reminder for individuals, who were prompted to ask about the levels of counterparty risk their savings and pensions were exposed to, and how they might better protect themselves in the coming months and years. UK pension funds’ lack of liquidity is only the first fault line in...
Read More »Is the Dollar Vulnerable to Buy Rumor Sell Fact after the CPI?
We suggested that the US jobs data and the CPI would be a 1-2 punch that would strengthen the greenback after it pulled back from extremes seen in late September. The US employment data were sufficiently strong, and the unemployment rate fell back to cyclical lows (3.5%), which prodded the market to again toy with the idea that the Fed funds terminal rate may be 4.75% rather than 4.50% and in Q2 next year rather than Q1. The dollar rose against most G10 currencies...
Read More »How to Do Economics
[Chapter 3 of Per Bylund’s new book How to Think about the Economy: A Primer.] Economics is often faulted for being “ideological”—for promoting free markets. This is a misunderstanding. The free market in economics is a model—an analytical tool. It excludes complicating circumstances and influences and allows us to study core economic phenomena on their own so that they are not mistaken for other effects. In economics, we are interested in understanding the nature...
Read More »How to decrypt bitcoin for Wall Street
The fluctuating price of bitcoin bears a repetitive hallmark: true believers hoard the vast majority of bitcoin in circulation and wait for the next wave of new disciples to push up the value by fighting for the scraps. When not covering fintech, cryptocurrencies, blockchain, banks and trade, swissinfo.ch’s business correspondent can be found playing cricket on various grounds in Switzerland – including the frozen lake of St Moritz. More from this author |...
Read More »The Fraudulent Social Contract of Bad Money Regimes
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Read More »Peter Klein: Why Managers Still Matter
Entrepreneurial businesses embrace adaptiveness and change, and continuous innovation enabled by flexible and responsive organizations, empowered at every level. That doesn’t mean there’s no role for managers. Inside the corporation, entrepreneurial management co-ordinates the business flow of responding to changing customer wants and preferences, so that resources are allocated and reallocated to the production activities that customers value the most. In fact,...
Read More »Elon Musk’s Twitter-Kauf und seine Bedeutung für Dogecoin
Dogecoin hält sich weiterhin in den Top 10 der Cryptocoins, doch der Hype um die Meme-Coins und DOGE im Speziellen ist ruhiger geworden. Schon seit knapp einem Jahr hat niemand mehr von „DOGE auf einem Dollar“ gesprochen. Stattdessen wäre man froh, wenn der Coin wieder auf zehn Cents steigen würde. Könnte Musk’s Twitter-Kauf dazu führen? Crypto News: Elon Musk’s Twitter-Kauf und seine Bedeutung für Dogecoin Bei ungefähr 17 Cent liegt das Hoch aus diesem Jahr für den...
Read More »No Rest for the Weary: The Week Ahead
In Volcker’s days, when he used money supply to justify tightening monetary policy despite high unemployment, the money supply was released while markets were open, and it was The report. Later, by the mid-1980s, leading up to the Plaza Agreement, the deterioration of the US monthly trade balance was critical. It became The report. For several years now, the monthly jobs report superseded it. It is the first hard data for a new month and often sets the tone for the...
Read More »A Cliché of Socialism: Under Public Ownership, We the People Own it!
Foundation for Economic Education founder and cornerstone Leonard Read always had an ear out for widely accepted but misleading clichés that served to aggrandize government power and limit liberty. In his 1965 “A Cliché of Socialism: Under Public Ownership, We the People Own It!” He focused his attention on the large gap between public ownership of assets and the idea that “we the people” own them. Read pointed out that not only is public ownership misunderstood, but...
Read More »Energy crisis acting as drag for Swiss economy
Another factor for the slowdown is foreign trade, which according to the forecast will weaken significantly next year. © Keystone / Gaetan Bally The KOF economic institute has joined other forecasting agencies to lower its predictions for the Swiss economy. However, the experts do not expect a recession for the time being. The Swiss Institute for Business Cycle Research at the Federal Institute of Technology (ETH) in Zurich is now forecasting growth in gross domestic...
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