Déjà vu all over again? Slouching Towards Regime Uncertainty
It is the argument of this commentary that following the Brexit vote we may be entering into a period of regime uncertainty. By the latter we mean political, economic, and financial regimes. This could turn out to be a déjà vu watershed period for the global economy...An Illusion of Value: Zirflation and Nirflation in a Market that is Overfed but Still Malnourished
The Brexit vote (for which we reserve some doubts that it is ever completed) generated some panic selling, sending investors to the refuge of safe havens. Hence, government bonds experienced price gains and yields turned even lower. Now we live in interesting days...Brexit, Delusions, Fiat Money, and Economic Prospects: Historical Reflections
“A greater Quantity [of money] employs more People than a lesser Quantity”, said John Law in 1705 in his pamphlet titled “Money and Trade Considered, with a Proposal for Supplying the Nation with Money.” And so started the story of paper money and credit, which...After Brexit: Now It’s Italy’s Turn
“Please don’t go” pleads the German newsweekly Der Spiegel on its cover this week, asking the British to vote against Brexit on June 23rd. Indeed, especially from the point of view of Germany, Brexit would be a disaster. We Germans would be left without a pro-market...Negative Rates and their Effects on the Equities and Bond Markets: Bifurcation Meets Bewilderment in Historical Perspective
Last week the European Central Bank (ECB) started buying corporate bonds. Over the course of the last four year the ECB has committed to “do whatever it takes” to save an ill-conceived monetary union and a dysfunctional Euro. Among its programs were the purchase of...Sign Up for Our Publications
