ISLM: a furtherexplanationand a defense http://feedly.com/k/IzqT9g I noted before the traditional representation of the ISLM is problematic. Yet as I also noted the ISLM model can accommodate changes that incorporate the criticisms of classical-Keynesian, post-Keynesian and other heterodox groups. There is no need for an investment function based on the marginal productivity of capital and the principle of substitution. The accelerator can be incorporated, and … Seguir leyendo ISLM: a further explanation and a defense

ShillerWorriedAbout "Boom InUSStocks… Bubbles Look LikeThis" http://feedly.com/k/18vYY6w On the heels of his recentappearancepouringcoldwateronJimCramer’shousingrecoveryexuberance, recent Nobel Prize winner Bob Shiller unloads another round of uncomfortable truthiness (presumably on the basis of his future-proofing tenure guaranteed by the Nobel). "Bubbles look likethis," Shiller tells Der Spiegel, adding that he is, "most worried about the boom in US stock prices." As Reuters reports, Shiller is concerned since "the … Seguir leyendo Shiller Worried About “Boom In US Stocks… Bubbles Look Like This”

BitcoinPlungesIntoBearMarket http://feedly.com/k/1hrsWv8 UPDATE: BTC has rallied 26% offitslowsinthelast 55 minutes – with extreme volumes From it’s gold–matchinghighsat $1242 onThursdaynight, the price of Bitcoin has collapsedover $400 (32%) to $840 onheavyvolume. Of course, this is only a one-week low for the exuberant digital currency but still a significant plunge (as its smaller brethren Litecoin has collapsed 51% fromitshighs). Interestingly, this drops the price of Bitcoin in … Seguir leyendo Fortísima bajada del Bitcoin

WhyHayek’sTheoryofPricesandKnowledgeisFlawed http://feedly.com/k/18uhtIv Frederic S. Lee explains in the passage below from insights by the British economist GeorgeRichardson: “After reading Friedrich Hayek’s article on economics and knowledge (Hayek, 1937), Richardson became concerned with the theoretical problem of the market conditions under which the enterprise could expect to generate the necessary information on which to base its investment decisions. Approaching the problem theoretically, Richardson first argued that … Seguir leyendo Why Hayek’s Theory of Prices and Knowledge is Flawed

ECBcontemplating new LTRO – with a twist http://feedly.com/k/IsCneP As discussed back in September (see post), the ECB may be forced to take further action in an attempt to reignite the area’s recovery. The central bank’s consolidated balance sheet is continuing to decline and many are blaming this reduced liquidity for the area’s weak credit growth as well as tepid and uneven economic expansion. It was … Seguir leyendo ECB contemplating new LTRO – with a twist

BitcoinNowWorth More ThanGold http://feedly.com/k/1abCPEx UPDATE: … AndthenBitcoincollapses 13% minutes later… It seems the growing tensions in Asia (Japan-China sabre–rattling and Indian capital controls) have prompted more great rotation out of fiat and into digital currency as China/India markets open. For the first time ever, the price of one unit of Bitcoin exceeds the price of an ounce of gold… 1 ozofGold = $1241.98 (Bloomberg) 1 … Seguir leyendo Bitcoin Now Worth More Than Gold

25% ofSpanishWouldConsiderLeavingSpainforEconomicReasons; ButWhereWouldTheyGo? http://feedly.com/k/1cQgn6U The employment and pay situation in Spain is so bad that 33% struggle to pay their bills. More importantly, 25% would consider leaving the country for better opportunities. Via translation from La Vanguardia, please consider OneinthreeSpaniardshave no moneyafterpayingtheirbills. One in three Spanish claims to have no money left after paying the bills, according to a report on consumer payments. Thestudyfurtherrevealsthat 25% … Seguir leyendo 25% of Spanish Would Consider Leaving Spain for Economic Reasons; But Where Would They Go?