Keynes' General Theory, the ISLM and Roy Harrod's 'Dynamics'
Article of the Week from Fixing the Economists
by Philip Pilkington
Too often discussions of the relationship between Keynes' General Theory and the ISLM model focus on John Hicks' 1937 paper 'Mr. Keynes and the Classics'. That paper appeared in the April edition of Econometrica, Volume 5, Issue 2. But Roy Harrod had already formulated the ISLM - in half-mathematical, half-verbal form - in the January edition of the same journal, Volume 5, Issue 1. I think that an appraisal of the relationship between the General Theory and the ISLM is far better done taking leave from Harrod's paper 'Mr. Keynes and Traditional Theory' as it will allow us to clearly highlight the differences and why Harrod glossed over them.
Read more >>
What We Read Today 07 September 2014
Econintersect: Every day our editors collect the most interesting things they find from around the internet and present a summary "reading list" which will include very brief summaries (and sometimes longer ones) of why each item has gotten our attention. Suggestions from readers for "reading list" items are gratefully reviewed, although sometimes space limits the number included.
- The European Central Bank whips out the big guns (Sabri Ben-Achour, Market Place) Hat tip to Ian R. Campbell, GEI Discussion Group, LinkedIn. Ben-Achour sees the ECB move to deeper negative interest rates and increased purchase of ABS (asset backed securities) having three effects: (1) weakening the euro vs. the U.S. dollar; (2) increasing the attractiveness of U.S. bonds and equities; and (3) increased competitiveness for European exports. See also next article.
Weekend Market Commentary: Sunday Edition
Weekend Market Commentary: Part II: Sending The U.S. Markets Into A Correction
UPDATED: 0945 EST 2014-09-07
Yesterday we emphasized that the EU represents a serious recessionary problem for the U.S. and should be watched carefully for any additional weakness. There are other issues in the U.S. that by themselves, could bring the U.S. Financial 'House of cards' crashing down. Our fear is that it could happen at any time, maybe this coming week!
It's legal for police depts to reject intelligent police officers
A court ruling allows an odd type of discrimination when hiring new police recruits.
A Word from This Newsletter's Sponsor
Americas most important day of 2014?
This July 1st, a new law (part of HR Bill #2847) goes into effect in America.
On the surface, it looks like just another tax law - but it actually has huge implications far beyond the tax code. This law actually changes our entire financial system... overnight.
Even the normally liberal Atlantic Monthly magazine said it "seems to be turning into a nightmare and disaster."
Yet 99% of Americans STILL have no idea what just happened. Make sure you get the facts and protect yourself.
Details here...
The Week Ahead: Are there Winning Stocks for the Rest of the Year?
by Jeff Miller, A Dash of Insight
In the absence of major economic news and events, the punditry usually tries to squeeze a little more juice out of old themes. The Fed reaction to the employment report will, no doubt, get some attention, but there are interesting corporate stories this week. Between the Apple iPhone announcement on Tuesday and the start of the Alibaba road show, there is news to fill the vacuum before late-week economic data.
Going out on a limb a bit, I expect this week's market focus to be: What stocks have the best potential for the rest of 2014?
Koruda: BoJ Should Set Benchmark for Wage Negotiations
by Dirk Ehnts, Econoblog101
Reuters reports from the Jackson Hole conference of late August, writing that the Bank of Japan's governor Kuroda has proposed to set benchmarks for wage negotiations:
Low long-term interest rates will likely not rise until the 2 percent target is reached, he said, adding that the BoJ's 2 percent inflation target, once met, could serve as a benchmark for wage negotiations.
The Next iPhone Will Have Big Upgrade Potential
from Felix Richter, Statista.com
by Niall McCarthy
According to data released by ComScore and reported in the Wall Street Journal, the next iPhone will have big upgrade potential.
Why Finland, Korea and Czech Republic Get the Most Bang for Their Educational Buck
by Peter Dolton, The Conversation
There are around 1.3 billion children enrolled in primary and secondary schools worldwide. Each year, governments spend trillions of dollars on their education systems with the objective of educating children to the highest possible standard.
Framing MMT
Econintersect: Jason Kessler of the Modern Money Network has put together a document in Scribdwhich presents the content of a series of articles posted by Prof. L. Randall Wray, University of Missouri, Kansas City on the New Economics Perspectives website.
L. Randall Wray
Infographic of the Day: Too Late to Learn?
This infographic takes a look at the late bloomers who succeeded despite their age
Axes of Evil
Age of Wisdom, Age of Foolishness (41)
Written by Adam Whitehead, KeySignals.com
The global brand of dictatorship is making a strong comeback in the democratic world. In the emerging markets, some say that it has never been out of fashion.
Read more >>
Earnings and Economic Reports Week Starting 08 September
Written by Merlin Rothfeld, Online Trading Academy
Econintersect: Here is a day-by-day rundown of the global economic calendar events for the coming week and the important earnings announcements each day, as well.
Video presentation follows the Read more >> jump.
Merlin Rothfeld
Rethinking Japan's 'Lost Decades'
One of the great economic myths of our time is Japan's "lost decades." As Japan doubles-down on inflationary stimulus, it's worth reviewing the facts.
The truth is that the Japanese and US economies have performed in lock-step since 2000, and their performances have matched each other going as far back as 1980.
Either Japan's not in crisis, or the US has been in crisis for a good thirty-five years. You can't have it both ways.
Trefis: Highlights Week Ending 05 September 2014
Written by Trefis
Below is a summary of the activity at Trefis during the past week that Trefis thought Econintersectreaders would find interesting.
Trefis is a financial community structured around trends, forecasts and insights related to some of the most popular stocks in the US. It provides the unique feature of allowing the user to model future valuation based upon projected changes in components of each business. It also provides communication capabilities among members, including consensus of member analysis compared to Trefis staff analysis and blogging opportunities for members.
Click on graphic for larger image and go to
Trefis interactive page.
Click "Read more..." to see our clickable table of contents with the most covered companies (more than 1 article) of the week identified. This week no company had more than one article.
Scotland Decides '14: if Yes Wins, What Happens Next?
by Arthur Midwinter, John Curtice and Michael Keating, The Conversation
The people of Scotland are suddenly facing the realistic prospect that monumental change may be in the offing. As most recently confirmed by a shock YouGov poll, support for Yes appears to be rising fast.
Most International Students in the U.S. Come from Asia
from Felix Richter, Statista.com
by Niall McCarthy
The Washington Post recently reported on the countries contributing the most students to universities in the United States.
