My recent post on the Efficient Market Hypothesis brought about the usual pushback from “passive” index fund advocates. As an advocate of low fee indexing I find this debate incredibly frustrating and it appears as though years of industry misinformation has muddied the waters here. Passive indexing advocates tend to argue that I am just moving… Read More
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I notice that the war cry for NGDP Targeting seems to be increasing with time. Michael Woodford, Christina Romer and many other economists have now endorsed it. The latest proponent is James Bullard of the St. Louis Fed. You can read his new paper here in case you’re looking for something to put you to sleep… Read More
John Nash, winner of the Nobel Memorial Prize in Economic Sciences and the equally prestigious Abel Prize in mathematics, died alongside his wife in a tragic car accident this week. Nash rose to popular fame due to Russell Crowe’s portrayal of his life in the Oscar-winning A Beautiful Mind, but his fame within economics needed no such Hollywood treatment to be assured.
Excuse this short break from the usually nerdy commentary to discuss something important, but a bit off topic. I was directed to this amazingly hilarious Tweetstorm by the Kentucky Fried Chicken account: “It is comparatively easy to prosper by trickery, the violation of confidence, oppression of the weak, sharp practices, cutting corners—all of those methods that we… Read More
I noticed Noah Smith and John Authers on Twitter discussing how great the Efficient Market Hypothesis is because it explains why indexing works. I responded saying that the EMH really has nothing to do with why indexing works. They didn’t seem to see my point of view so let’s try this again and see if we… Read More
Ben Carlson has a good post on his site about the reality of investment losses. In essence, you’re going to suffer periods of poor performance in the short-term. Learning to deal with these losses are essential to sticking with a process and a plan. And having a process and a plan are crucial to long-term… Read More
Paul Krugman has an explanation on his site for why he truncated the chart that he says proves that housing starts and interest rates are correlated. My original post went a little viral (as far as nerdy econ posts go) and got picked up by a number of other outlets. Some of the readers implied… Read More