For whoever wants to see the real-life results of giving in to populism, the UK’s case is a fascinating one. Counting the costs of Brexit is only beginning, but already the picture is a gloomy one.Continue reading
Do you want to know how the next financial crisis will arrive, and how it could be prevented? In that case, read “The Money Formula“, a book by Paul Wilmott and David Orrell published earlier this year.
It shows you, with mathematical precision, what the financial world did not learn from the previous crisis. It also shows why it is so difficult for the rest of the world to catch them out.
By Mirela Roman
Central bankers have been striving to bring inflation down for a long time. But ironically, they took a U-turn after the financial crisis and are now trying to heal the wounds via negative or near zero lower-bound rates, “unorthodox” stimulus such as quantitative easing or various forward guidance and communication techniques.
As words almost became monetary policy tools, prices continue to stay stubbornly low or on a downward path. But there is one thing that bucks the trend, and its swings are even more sensitive to the way central banks talk than those of inflation.