Archive for August 14th, 2012

Should new editions of intermediate microeconomics textbooks be banned?

August 14, 2012

An amazing post by an amazing blog and its team of bloggers.

Francis Woolley says econ authors bring new editions to kill second hand market.

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ECB’s TARGET2 system vs. Fed’s interdistrict settlement account

August 14, 2012

A nice analysis on TARGET2 account by Richmond Fed econs – Thomas A. Lubik and Karl Rhodes.

They say TARGET2 is not a cause but symptom of the Eurozone crisis. My research on the same was also on similar lines.  I am not going into Target2 discussion as have pointed to many articles etc in the past.

This bit on comparison of ECB’s Target2 system (t2) and Fed’s interdistrict settlement account (ISA) is really interesting. The comparison basically started when Herbert Sinn (who kickstarted the T2 debate) said the settlements between Eurozone central banks should be as done in Fed’s case:

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Will falling natural gas prices help mitigate the impact of rising oil prices?

August 14, 2012

Not really as per this note. The analysis is for US economy..

As oil still forms much of the total natural resource (oil +gas) consumption, decline in natural gas prices has not really impacted much.

Historically, oil and natural gas prices have moved hand in hand. However, in the past few years, while oil prices climbed to near record peaks, natural gas prices fell to levels not seen since the mid-1970s as a result of new hydraulic fracturing technology. U.S. consumer energy expenditures are still mainly driven by oil prices, so household energy bills got little relief as natural gas prices fell. Moreover, even though the United States has trimmed crude oil imports, they still equal a substantial share of gross domestic product.

 

Ponzi scheme was actually a case of failed arbitrage…

August 14, 2012

This is an amazing article on Charles Ponzi, the one on whose name all  fraud financial schemes are named. The website just made it paid and was really disappointing as it was free till yesterday…

The article makes for a great case study on several subjects:

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