economics
Imported tag from Readwise
economics
The magnitude of the crisis, in other words, largely reflects the capital structure of the affected economy,
Michael Pettis • The Volatility Machine
Hyman Philip Minsky (b. 23 September 1919, d. 24 October 1996) was best known for his Financial Instability Hypothesis of the business cycle, which emphasized the dynamics of business investment finance as a recurring cause of macroeconomic instability (Minsky 1972, 1980). During a boom, the expansion of debt-financed investment spending causes
... See moreBoston University • Minsky’s Financial Instability Hypothesis and Modern Economics
The Commission was tasked not only with determining the distribution between Union and States of the net proceeds of taxes, but also reviewing and commenting on the design of fiscal principles for various grants that are typically provided alongside revenue shares. We were, in particular, asked to consider performance-based incentives to support
... See morereadwise.io • Fifteenth_Finance_Comission
The orange line could occur if a lot of private European and Japanese investors buy un-hedged Treasuries in a risk-off move, which would delay the need for increased U.S. debt monetization by the Federal Reserve. Either way, I expect down for the dollar in the multi-year long run, but the path to get there has these two main outcomes, in my view.
Th
... See moreLyn Alden • The Global Dollar Short Squeeze
If many private investors from Europe and Japan decide to buy U.S. government bonds without any protection against losses, it could slow down the need for the Federal Reserve to create more money to cover U.S. debt. In the long run, I believe the value of the dollar will go down, but there are two main ways this could happen.
To understand when and if the dollar might suddenly increase in value, we should pay attention to the Federal Reserve's financial situation and how much these foreign investors are buying. If they buy a lot of U.S. bonds, it could delay the Fed needing to create more money to handle the growing U.S. government debt. However, if not enough people want to buy these bonds to cover more than $1 trillion in yearly U.S. government spending, the Fed will have to step in and create a lot of money to fill that gap, which could add a lot of dollars into the economy for years to come.
governs the economy affects savings and investment imbalances. Culture and individual preferences, unfortunately, matter a lot less than we think, even if they are much easier to understand and discuss.
Michael Pettis • The Great Rebalancing
when analyzing the prospects of both value and growth stocks, it is necessary to take into account asset growth, at both the company and the sectoral level.
Edward Chancellor • Capital Returns
Another example is industrial robotics, which Beijing began prioritizing in 2015 as part of its Made in China 2025 strategy. At the time, there was a clear rationale for building a stronger domestic robotics industry: China had surpassed Japan to become the world’s largest buyer of industrial robots, accounting for about 20 percent of sales
... See moreZongyuan Zoe Liu • China’s Real Economic Crisis
When we use Brazil as a quintessential example, we can see how much their dollar-denominated GDP suffered during the three times where the dollar index spiked significantly:
Lyn Alden • Deep Dive: Emerging Markets
The only times a factor like the size of the Fed’s balance sheet will be useful is when there is a change in rate of growth. As long as its growing (or shrinking) at a constant rate, it will be of no help to predict any future effect on the economy or asset prices, no matter what a simple overlay chart suggests.