A key feature of macroeconomic analysis is the relationship between a country’s savings and investment rates. Savings represent income that is not consumed. Investment means spending on assets that will last for some period of time, such as factories, houses, … Continued
To laugh often and much, to win the respect of intelligent people and the affection of children, to earn the appreciation of honest critics and endure the betrayal of false friends, to appreciate beauty, to find the best in others, … Continued
In economics and finance it is important to be clear about when we’re discussing a stock – the amount of something at a point in time – and when we’re referring to a flow – the volume of something during … Continued
Finance theory is rooted in the conventional neoclassical economics assumptions of how rational people approach risk. It assumes that people can mostly be thought of as having consistent preferences over outcomes, evaluated according to the probability of their happening. Rationality, … Continued
Although there is nothing much to rival the views from the top of the Empire State Building and GE Building (the “top of the rock”) the part of New York that has only recently become my favourite is more remarkable … Continued
Being diagnosed with cancer concentrates the mind. In my case, nearly four years ago, the diagnosis was followed by two operations and six months of chemotherapy. Chemo is quite extraordinarily unpleasant and the third worst experience of my life. (Since … Continued
A few weeks ago I took a group of visiting Chinese finance executives to visit two banks in London, as part of a Cambridge Judge Business School Executive Education course. Although technically both are described as banks, the two institutions … Continued
In August 2012 the University of Cambridge got planning permission for its £1 billion expansion in the area known as North West Cambridge, which is a roughly triangular shaped area of land bounded by the M11 motorway to the west, … Continued
Financial markets set the prices of assets such as stocks and bonds through the interaction of demand and supply. Deliberate attempts to fix or distort those prices, termed “market abuse” in the EU, are therefore usually illegal. But there is … Continued
The most irritating words used by management gurus and pundits on management are those which replace existing words that do the job already and those which obfuscate and mislead. There are many such words but the one that currently irritates … Continued
Perhaps I’m a bit naive, but in my years in the finance business I met very few people who struck me as unethical. Selfish, blinkered, dull and sometimes even quite stupid, yes, but seldom really bad. Perhaps they were good … Continued
The Financial Times reported yesterday that Germany was making an audit (*) of its gold holdings, much of which are abroad. The newspaper Suddeutsche apparentlu estimates that about 1,500 tonnes of the total 3,400 tonnes of German owned gold are … Continued
The recent death of British historian Eric Hobsbawm produced a surprisingly broad range of eulogies, even from those who were repelled by his long term membership of the Communist Party (Niall Ferguson for example turned out to be a good friend … Continued
After the absurdity of awarding President Obama the Nobel Peace Prize before he had actually done anything, there were many laughs and jeers at the decision to award this year’s prize to the European Union. But there is a good … Continued
It is fifty years since the Cuban Missile Crisis of October 1962. Many people have said that this period marked the most important historical event of the twentieth century, namely that the USA and the USSR did NOT go to … Continued