jueves, 31 de mayo de 2012
What the collapse in interest rates means
Aca
"The U.S. Treasury rate just represents the rate at which people are willing to lend money to the U.S. government. So when the 10-year U.S. Treasury is at 1.53670 percent, it means people are willing to lend to the government, and receive only 1.5370 percent interest each year for the next 10 years."
Larry Summers recomienda gastar. David Glasner le comenta a Summers
"The U.S. Treasury rate just represents the rate at which people are willing to lend money to the U.S. government. So when the 10-year U.S. Treasury is at 1.53670 percent, it means people are willing to lend to the government, and receive only 1.5370 percent interest each year for the next 10 years."
Larry Summers recomienda gastar. David Glasner le comenta a Summers
martes, 29 de mayo de 2012
lunes, 28 de mayo de 2012
viernes, 25 de mayo de 2012
jueves, 24 de mayo de 2012
Sobre repos
Aca
"Legally, a repurchase agreement (repo) is a short-term transaction in which a borrower “sells” a security (such as a bond) to a lender, and simultaneously contracts to “repurchase” that security at a fixed price on a specific later date. Because the intent is for the borrower to repurchase the security from the lender rather than relinquish it completely, a repurchase agreement is functionally equivalent to a loan. The initial “sale” price of the
security is the amount of the loan. The proceeds from the repurchase serve as repayment of the loan with interest. The security acts as the collateral."
miércoles, 23 de mayo de 2012
martes, 22 de mayo de 2012
The endangered public company
Rival versions of capitalism.
"Mark Zuckerberg, Facebook’s young founder, resisted going public for as long as he could, not least because so many heads of listed companies advised him to. He is taking the plunge only because American law requires any firm with more than a certain number of shareholders to publish quarterly accounts just as if it were listed."
The endangered public company
"Public companies triumphed because they provided three things that make for durable success: limited liability, which encourages the public to invest, professional management, which boosts productivity, and “corporate personhood”, which means businesses can survive the removal of a founder."
In praise of equity
The twilight of the public corporation
"Mark Zuckerberg, Facebook’s young founder, resisted going public for as long as he could, not least because so many heads of listed companies advised him to. He is taking the plunge only because American law requires any firm with more than a certain number of shareholders to publish quarterly accounts just as if it were listed."
The endangered public company
"Public companies triumphed because they provided three things that make for durable success: limited liability, which encourages the public to invest, professional management, which boosts productivity, and “corporate personhood”, which means businesses can survive the removal of a founder."
In praise of equity
The twilight of the public corporation
lunes, 21 de mayo de 2012
Scott Sumner critica a MMT
Aca
"But there’s one problem with relying on interwar analysis—it’s very much a product of its time. Prior to WWII, pure fiat money regimes were treated as pathological cases, associated with hyperinflation. Most currencies were either fixed to gold, or expected to be fixed in the near future. Studies have shown that the expected rate of inflation is roughly zero under a commodity money exchange, which is just another way of saying the expected change in the relative price of gold was roughly zero. This had many important consequences for monetary policy:
1. There was almost no Fisher effect in interest rates. This meant that changes in nominal interest rates were probably a better indicator of the stance of monetary policy than today. (Although still far from ideal.)
2. Liquidity traps were more likely for two reasons; expected inflation was quite low, and the monetary authority could not credibly commit to a higher inflation target. That made fiscal stimulus relatively attractive.
3. The Phillips curve was more stable.
4. The nominal/real distinction was less important. The concept of the super-neutrality of money was not well understood."
jueves, 17 de mayo de 2012
miércoles, 16 de mayo de 2012
Inflation targeting is not working
Simon Wren-Lewis. Jeffrey Frankel: The death of inflation targeting
Is inflation targeting really dead?
David Beckworth
Nominal GDP targeting could take the place of inflation targeting
Jeffrey Frankel y David Beckworth
Central banks can phase in nominal GDP targets without losing the inflation anchor: Propuedtas de Jeffrey Frankel para implementar NGDP targeting
Is inflation targeting really dead?
David Beckworth
Nominal GDP targeting could take the place of inflation targeting
Jeffrey Frankel y David Beckworth
Central banks can phase in nominal GDP targets without losing the inflation anchor: Propuedtas de Jeffrey Frankel para implementar NGDP targeting
martes, 15 de mayo de 2012
lunes, 14 de mayo de 2012
Consejos de Warren Buffet
Aca
"If I could pick one thing to read it would be all of Buffett’s annual letters including his partnership letters. The education from those letters is more valuable than just about any investment book you’ll find. The partnership letters are here and the annual BRK letters are at the Berkshire website."
sábado, 12 de mayo de 2012
viernes, 11 de mayo de 2012
miércoles, 9 de mayo de 2012
martes, 8 de mayo de 2012
lunes, 7 de mayo de 2012
domingo, 6 de mayo de 2012
miércoles, 2 de mayo de 2012
Regulatory reform since the financial crisis
Discurso de Dan Tarullo
Though motivated in part by regulatory arbitrage, these developments were driven by more than regulatory evasion: Such factors as the growth and deepening of capital markets and the rise of institutional investors as guardians of household savings accelerated the fracturing of the system established in 1933. Whatever the relative importance of these causal factors, however, one thing is clear: Neither the statutory framework for, nor supervisory oversight of, the financial system adapted to take account of the new risks posed by the broader trend. On the contrary, regulatory change for the 30 years preceding the crisis was largely a deregulatory program, designed at least in part to address the erosion of banks’ franchise value caused by the rapid growth of credit intermediation through capital markets."
"The New Deal reforms, engrafted onto preexisting restrictions in the National Bank Act and state banking laws, largely confined commercial banks to traditional lending activities within a circumscribed geographic area, while protecting them from runs and panics through the provision of federal deposit insurance and Federal Reserve discount window access. At the same time, investment banks and broker-dealers were essentially prohibited from affiliation with traditional banks. This approach fostered a system that was, for the better part of 40 years, very stable and reasonably profitable, though not particularly innovative in meeting the needs of savers, on the one hand, and of households and businesses wishing to borrow funds, on the other.
Beginning in the 1970s, the separation of traditional lending and capital markets activities began to break down under the weight of macroeconomic turbulence, technological and business innovation, and competition. The dominant trend of the next 30 years was the progressive integration of these activities, fueling the expansion of what has become known as the shadow banking system, including the explosive growth of securitization and derivative instruments in the first decade of this century.
This trend entailed two major, and related, changes. First, it diminished the importance of deposits as a source of funding for credit intermediation in favor of capital market instruments sold to institutional investors. Over time, these markets began to serve some of the same maturity transformation functions as the traditional banking systems, which in turn led to both an expansion and alteration of traditional money markets. Ultimately, there was a vast increase in the creation of so-called cash equivalent instruments, which were supposedly safe, short-term, and liquid. Second, this trend altered the structure of the industry, both transforming the activities of broker-dealers and fostering the emergence of large financial conglomerates.
martes, 1 de mayo de 2012
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