Blog Posts on macroeconomics

Macro yan. Wala kong maintindihan. Si Kuya at Mommy mga Econ... by Just Call Me Marsh on Nov 20, 2011Macro yan. Wala kong maintindihan. Si Kuya at Mommy mga Econ majors. Hindi ko manlang magawang magtanong. Mamaya onti.  Ganda ng kuko ko.

That uncertain double dip by FOO Law and Economics on Oct 10, 2010Economists don’t really know what will happen next.  How do I know?  Because Frank and Ernest said so. And from the cartoon (left part), it seems that when economists think, they tank.  (We should be thankful!) But of course it is quite poss...

The Holy Grail of investments – Part 2 by FOO Law and Economics on Oct 2, 2010In an earlier post, I outlined the conventional wisdom on what drives the business cycle, and how stock and bond markets react to the cycle. What if the stock market can by itself induce the business cycle?  In this case, the conventional wisdom no...

Idiots and “normals” by FOO Law and Economics on Sep 28, 2010I thought the “new normal” was just a PR gimmick.  At one level it justifies how supposedly smart folks didn’t call the 2007-08 crisis, so that now it is ok to do some Monday morning QBing to say, ok, the world changed after 2008.

The Holy Grail of Investments by FOO Law and Economics on Aug 20, 2010There is a latent sentiment “out there” that there is something wrong with mainstream economics, at least insofar as it is used for generating investment advice. The conventional wisdom on the capital markets starts with the idea that the real ec...

Are we in bubble territory? Divining the mind-set of the Philippine central bank by FOO Law and Economics on Aug 12, 2010From the conclusions of a paper written by Bangko Sentral staff in 2004: It is even more difficult to determine the right magnitude of interest rate to burst the bubble. For this reason, monetary policy need not be preemptive during the boom period.

Macro debates – DSGE flawed by FOO Law and Economics on Jul 22, 2010Central banks have been using DSGE macro models to guide monetary policy. Robert Solow now acknowledges that these models are fundamentally flawed. But what does it mean for the layman? I believe it means that central bank monetary policy will be ...

Why does it take 12 years by FOO Law and Economics on Jul 18, 2010for the IMF to own up to its mistakes? So it seems. So, what exactly were its mistakes at the time of the Asian crisis? In the IMF’s own words, “The IMF learned important lessons from the Asian crisis. In particular, the Fund recognizes...

Paul Krugman redux by FOO Law and Economics on Jul 2, 2010The level of debate post-2008 crisis has come down, low down, to challenges to a bar room brawl. If only Krugman did some reading of even a quarter of Austrian economics, he couldn’t dare be a macho guy again. It seems that the Europeans are ri...

A Look on the Mighty Dollar – June 15, 2010 by Laid Trades on Jun 15, 2010Here's a look on the daily time frame of the US dollar index (USDX). In case you do not know, the USDX is a measure of the greenback's value against a basket of several other major currencies. These currencies are made up of the geometric mean of the...