Earlier this year, Matthew Klein at FT’s Alphaville, made a typically punchy and well-argued case for abandoning a cornerstone of the current macro policy framework – the NAIRU.
This inelegant acronym (“Non-Accelerating Inflation Rate of Unemployment”) refers to the rate of unemployment which is consistent with stable inflation.… Read the article
It has been a tough five years or so for active equity managers in the US. In the main, correlation between different stocks has been high and the dispersion low.
This has meant, even if you have successfully picked the right stocks there has been less reward on… Read the article
Why is the Bank of Japan (BoJ) trying to raise the rate of inflation? Taking account of its demographic profile, Japan’s economic performance has been impressive by developed world standards, as Anne Richards at Bond Vigilantes recently points out, and the economy appears to be at close to… Read the article
Behavioural Finance Economics Markets
In the depths of market pessimism in the middle of last year Aaron wrote about how investors seemed to have given up any hope of interest rates ever increasing. That now seems a long time ago, at least if you consider market commentary.
It… Read the article
Investment Industry Markets
There are a couple of (related) subconscious assumptions that investors seem to hold today. The first is that we are in a low return world, and the second is that investing for income is harder today.
Both of these beliefs are ultimately driven by the very low levels of government… Read the article