Mike Norman Economics

The stability of the solutions of workhorse dynamic stochastic general equilibrium (DGSE) models is a major drawback of these models when trying to explain recessions. This article looks at the estimated linear New Keynesian model that was used in the previous discussion of the estimation of r* -- the Holston-Laubach-Williams (HLW) model. As I have noted a few times previously, more interesting behaviour can be obtained by nonlinear DSGE models. However, this flexibility comes at the cost of...

 By hook or by crook, a look inside the City of London banking industry."It’s an industry that rewards psychopaths.” As the global economy is potentially looking at a deep recession due to COVID-19 just after recovering from the 2008 financial crash, we hear from an ex-banker who worked in the City of London’s Square Mile from the mid-90s to 2008. He lifts the veil on the sordid world of investment banking where he enjoyed thousand-pound meals, sex parties with colleagues and £600k bonuses...

 This is interesting. Planet of the Apes was a very powerful film, and it is just as good a warning for today as it was when it was made. The apes were of different types, and strangely, when not filming, the actors kept to their own groups, chimps with chimps, gorillas with gorillas, etc.[embedded content]

MMT to the rescue.Mint (India)We could reshape our economy through state generation of jobsG.N. Bajpai is an author and former chairman of the Securities and Exchange Board of India and Life Insurance Corporation of India

Minor tech stock correction being called a "crash." That's ridiculous. Rally will resume. Trade and invest using the concepts of MMT. Get a 30-day free trial to MMT Trader. https://www.pitbulleconomics.com/mmt-trader/?s2-ssl=yes/ Download my podcasts! New one every week. https://www.buzzsprout.com/1105286 Mike Norman Twitter https://twitter.com/mikenorman

“The Chinese luxury market – which is expected to account for half of global luxury sales by 2025 – consists of hundreds of millions of young, digitally-native consumers,” said Daniel Zhang, chief executive of Alibaba, in a statement about the deal.…""...half of global luxury sales by 2025…"? Gobsmacked. That really changes the consumer game. MarketWatchAlibaba brings notable names, including Taylor Swift, to China for Singles DayTonya GarciaSee alsoBusiness InsiderAlibaba slides 9% as...

During the Barrett confirmation hearing, we discussed the narrative of the Democrats and the media that the Affordable Care Act was dangling in the balance on the Supreme Court. With huge pictures of beneficiaries of the ACA displayed around the room, some Democratic senators actually said that Barrett was part of a conspiracy to rush her to the Court to kill the ACA. As I repeatedly said, the narrative was entirely disconnected from any legal reality since at least two conservative...

WTF? OK, no settlement yet but this looks really weird.Why is this paragraph so disturbing? First of all, the words “deficiencies” and “audit” are not two words that one wants to read in the same sentence pertaining to any Wall Street bank. But they are particularly frightening when it comes to the largest bank in the United States that has racked up an unprecedented five criminal felony counts – to which it admitted guilt – in the past six years. That’s five more felony counts than the bank...

The Chinese government is taking back control of the commanding heights, which is a sine qua non of state socialism.MericsTechnology control is changing hands: The undercurrents of China’s new digital moneyKai von Carnap

With bullish sentiment increasing the low hanging fruit is disappearing and correction risk rises. Trade and invest using the concepts of MMT. Get a 30-day free trial to MMT Trader. https://www.pitbulleconomics.com/mmt-trader/?s2-ssl=yes/ Download my podcasts! New one every week. https://www.buzzsprout.com/1105286 Mike Norman Twitter https://twitter.com/mikenorman