Mike Norman Economics

My blog is on holiday today. There is a lot going on at present and I will report on analysis and upcoming events in the coming period soon. MMTed is coming together, slowly, thanks, in part, to the donations that have been coming in. We need more funds but we appreciate the support so far. Call for MMTed Support I imagine the current crisis will put a halt on people donating to causes.But we are making progress in developing the program that will become – MMTed. I ran my first...

Professional physicist (and amateur economist) Jason Smith ask professional economists some potentially embarrassing questions.Information Transfer EconomicsWhat does this physicist think of economists?Jason Smith

Covid-19 driven collapse of global supply chains, demand and mobility will painfully spawn next great tech-led economic models According to Pepe Escobar, the East has dealt with this much better than we have.  Pepe Escobar - Total system failure will give rise to new economy

Punk Rock: “Commies Don’t Surf”. A San Diego surfer protests closure of the beaches. For people who spend the time in the water he does, closures are a crushing blow. He’s right. People are out walking, jogging, riding bikes and their rights have not been trampled. https://t.co/7I7dFEvsgn — Robert Brack (@robertbrack) April 10, 2020 [embedded content]

The Depositories are more or less tapped out...Total Assets of Banks already up to nearly $20T at $19,700B.... Residual $2,040B... this ratio now down to 10.3% from 11.2% back in January...They're going to have to start to accrue additional Residual for a while to get this % stabilized... The baton is going to have to be passed over to Fiscal Policy at this point... From Tuesday, customers applying for a new mortgage will need a credit score of at least 700, and will be required to make a...

Which kind of capitalism?UK-centric but applicable elsewhere, like the US.Stumbling and MumblingWhat centre?Chris Dillow | Investors Chronicle

Maybe this is why Buffet sold his DAL and LUV at the bottom.... maybe he gets back in after this effective ownership  dilution by the govt is over... he normally holds through or even adds... Treasury Secretary Steven Mnuchin’s insistence that America’s major airlines partially repay taxpayer funds aimed at shoring up the industry has set up a clash between the Trump administration and the carriers https://t.co/DWhv6FQFwT — Bloomberg Economics (@economics) April 12, 2020

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The virus, not politicians, will determine when economies can safely reopen. New studies show that it's more contagious and more resilient than previously believed. The Virus, Not Politicians, Will Determine When Economies Can Safely Reopen

The big macro issue facing us is the question of inflation that results from activity restrictions. I wrote about inflation forecasting earlier, and the key take-away is that CPI prints will depend heavily upon the weight of each component, and the components will be moving in different directions. However, one might want to step up away from CPI forecasting, and ask about the generic supply and demand situation, accepting that the resulting inflation might not be captured by the CPI. My...