Yellen should re-read Friedman’s “The Role of Monetary Policy” and lay the Phillips curve to rest

It is the same thing every month – anybody seriously interested in financial markets and the global economy are sitting and waiting for the US labour market report to come out even though the numbers are notoriously unstable and unreliable. Why is that? The simple answer is that it is not because the numbers are important […]

Rational Partisan Theory, elections, fiscal consolidation and exchange rate determination

When I was in university more than 20 years ago I had one other major interest other than monetary economics and that was public choice theory and I was particularly interested in how to understand macro economic issues through the use of public choice theory. I particularly remember writing a paper on Political Business Cycle […]

Prediction markets and UK monetary policy

I have long argued that central banks should utilise prediction markets for macroeconomic forecasting and for the implementation of monetary policy. In today’s edition of the UK business daily City AM I have an oped on this topic and about how the Bank of England should have a closer look at prediction markets. See here: IN […]

The Crowd: “Lars, you are fat!”

On Friday I was doing a presentation on the global economy (yes, yes mainly on global monetary policy) for 40-50 colleagues who are working as investment advisors in the Danske Bank group. As I was about to start my presentation somebody said “The audience have been kind of quiet today”. I thought that was a […]

A fistful of intellectual power: Goodbye Edward Hugh, R.I.P

Tonight I got the very sad news that British-Catalan economist Edward Hugh has passed away. This is from Ara in English: ARA has learned that British economist Edward Hugh (Liverpool, 1948) died of cancer on Tuesday at the Josep Trueta Hospital in Girona. Hugh moved to Catalonia in the 1990s and was considered by The New […]

Guest post: Central bankers should watch the Eurovision (by Jens Pedersen)

Guest post: Central bankers should watch the Eurovision By Jens Pedersen Congratulations Emmelie de Forest with the 2013 Eurovision song contest first place. You have made all of Denmark very proud!! Denmark normally does not win anything, so this is really big for us! (note the irony…) However, I regret to say that I did […]

Remembering the “Market” in Market Monetarism

A couple of days ago the young and talented George Mason University economist Alex Salter wrote the following statement on his Facebook account: I wish market monetarists would put relatively more emphasis on the “market” bit. I agree with Alex as I believe that one of the main points of Market Monetarism is that not […]

Gabe Newell on prediction markets – NGDP level targeting and Lindsay Lohan

This is interesting – Gabe Newell on Youtube on the value of prediction markets. I love it…Gabe is co-founder and managing director of Video game developer video game development and online distribution company Valve Corporation (I stole that from Wikipedia). This guy is brilliant and he certainly understands markets. Some of my earlier posts on prediction markets: Yet another argument for prediction markets: […]

Leave it to the market to decide on “tapering”

The rally in the global stock markets has clearly run into trouble in the last couple of weeks. Particularly the Nikkei has taken a beating, but also the US stock market has been under some pressure. If one follows the financial media on a daily basis it is very clear that there is basically only […]

Unfocused vacation musings on money – part 2

It is sunny this morning in Skyrup and we are planning a daytrip to Kristianstad. The Danish king Christian IV founded the city of Kristianstad in 1614. We might be in Sweden, but Kristianstad still has its old Danish name and the Danish heritage is visible everywhere – including in the city’s Coat of Arms. […]