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Tag Archives: bubble

Are interest rates the most effective economic policy tool?

By Marshall Auerback This post first appeared on AlterNet Cutting rates at this juncture simply perpetuates current bubble-like conditions and therefore will make the ultimate outcome worse when the bubble inevitably bursts. The one silver lining in the nomination of political hack Steve Moore to the Federal Reserve is that it might spur a productive discussion on the benefits (or lack of them) of monetary policy as an instrument of economic growth. This is principally because it’s...

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Minotaurs, Baumol’s Disease, Brexit and my bone to pick with Albert Edwards

It’s news Friday time. Like last week, I want to switch things up a bit and focus on the news. I am going to present a news story. And then I am going to expand on it, riffing off it and giving you ‘my take’ on the story. Hopefully, this will highlight some things being left unsaid. Also, this is the perfect time to make a sales pitch! This is one of the occasional free Credit Writedowns posts I write. If you like what you read please consider subscribing to the weekday newsletter....

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The financial transmission of housing bubbles: Evidence from Spain

[unable to retrieve full-text content]Housing bubbles may crowd out credit from other sectors, but they may also have a crowding-in effect by providing collateral to real estate-owning firms or generating attractive assets which banks can securitise and use to increase their credit supply. This column applies data from the Spanish housing bubble to a simple model of a closed economy to show that both effects were present. At first, the crowding-out effect dominated, but then crowding in...

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The field of dreams in Internet 2.0

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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Credit Writedowns daily, tech-heavy edition

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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Edward Harrison — James Montier: The Advent of a Cynical Bubble

James Montier is one of my favorite market strategists. He is really good on behavioral economics. And his work inspired one of my favorite posts here on 17th century philosophers Descartes and Spinoza. James is also very good on his macro because he understands modern money and the sectoral balances framework of the late Wynne Godley.... Credit Writedowns James Montier: The Advent of a Cynical BubbleEdward Harrison also We are going from a market protected by the Fed to one in which the...

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Bitcoin’s big problem: The modern state can make anything it chooses generally acceptable as money

By Marshall Auerback (This post was first published on Alternet) Is the bitcoin craze another in a series of history’s most infamous bubbles, or is it a genuine harbinger of a new global financial architecture? In spite of recent market turbulence, its champions see bitcoin (and its cryptocurrency peers) as an ideal market-generated solution as questions arise about the future viability of...

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