Tag Archives: Notes

On his blog, Ben Bernanke discusses the merits of the Fed’s strategy to slowly reduce the size of its balance sheet to pre crisis levels. Bernanke suggests that this strategy should be reconsidered: First, the large balance sheet provides lots of safe and liquid assets for financial markets. This might strengthen financial stability. (DN: In my view, there are also reasons to expect the opposite.) Second, a larger balance sheet can help improve the workings of the monetary transmission...

In the FT, looking back at ten years of The Long View, John Authers offers investment lessons that may be summarized in five points: Always worry about costs and don’t try to outsmart the market. That is, hold index funds. Rebalancing pays off. Since getting the timing right is very hard, being out of the market is as risky as being in it. To beat the market, buying at low prices is key. But know what you know and what you don’t. Public markets are efficient. Money isn’t everything; in...

In the FT, Elaine Moore reports that “[d]eveloping economies are on course to raise a record sum on global debt markets this year, as ultra-low rates in the developed world cheapen borrowing costs for countries from Asia to South America.” By the end of the year, hard currency debt sales by countries such as Mexico, Quatar, Saudi Arabia and Argentina are expected to reach USD 125 billion.

Nevada offers lots of loneliness, including The Loneliest Road in America. Some other roads are even quieter.

The Economist reports about the political economy aspects of America’s semi-nationalized mortgage industry.

Enlargeable topographic map of the contiguous United States with hypsometric tints. Source: Wikipedia.

On a new website, Aleksander Berentsen rejects the Swiss Vollgeld initiative. As an alternative, he suggests the Swiss National Bank should offer transaction accounts for everybody, in line with proposals I have made earlier (see here (2016), here (2015), here (2015)). In the Handelszeitung (here and here), Simon Schmid reports.

On a new website, Aleksander Berentsen rejects the Swiss Vollgeld initiative. As an alternative, he suggests the Swiss National Bank should offer transaction accounts for everybody, in line with proposals I have made earlier (see here (2016), here (2015), here (2015)). In the Handelszeitung (here and here), Simon Schmid reports....