economics

What followed after Volcker was a new kind of institutional arrangement that Minsky called “money manager capitalism”, driven by a new breed of institutional investors in pension funds, insurance companies, and mutual funds. Unlike the immediate postwar, long-term capital development of the nation was off the table, replaced instead by the pursuit

of a company’s customers, and the difficulty of cutting costs to move downmarket profitably—together create powerful barriers to downward mobility.

The stock market commonly responds by downgrading the value of the acquiring firm, because experience has shown that efforts to integrate large firms fail more often than they succeed.

At that time the short U.S. swap spread, the European cross-swap trade, and the short volatility trade were by far LTCM’s largest trades.

Xi has made it clear that his top priority is to transform China into a self-reliant global superpower. He aims to be the leader who definitively leaves China’s “century of humiliation”—a reference to the long era of China’s perceived subservience to Western powers—behind. In this context, the government’s current GDP growth target of around five

They are right. Labor may be cheap, but capital is free. It may even have a negative cost.

this book I will argue that certain types of financial crises—like the crises that have affected many Latin American and Asian countries in recent years—are problems of sovereign balance sheet mismanagement and not economic mismanagement.

Accordingly, the correct remedies should be rooted in domestic macroeconomic policies. For Europe, this means spending more on public infrastructure to close the productivity gap that opened with the United States. For China, it means rebalancing economic activity towards consumption. For the United States, it means pursuing fiscal consolidation