A wider perspective.

Ideas and analysis on money, markets and the world around us.

Why the business cycle is failing

Since WW2 economic theorists have posited that demand in the economy could be stimulated by a combination of deficit spending by the government and by suppressing interest rates. The separation of demand from production…

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A market reset due

Recent evidence points increasingly towards global economic contraction. Parts of the Eurozone are in great difficulty, and only last weekend S&P the rating agency warned that Greece will default on its debts "at some…

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Market Report: Market turbulence

This week has seen highly volatile equities (mostly down), bond yields sharply lower, the oil price hard down, and gold side-lined but recovering after a miserable month or two. On the news front, the S&P rating agency…

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The velocity myth

If there is one concept that illustrates the difference between a top-down macro-economic approach and the reality of everyday life it is the velocity of circulation of money. Compare the following statements: "The…

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