First, I need to clear the air on an issue that is cited over and over, of which causes me great discomfort. In last Thursday’s Financial Times, Robert Pollin and Michael Ash, the two professors who sponsored graduate student Thomas Herndon of UMass-Amherst–and of recent fame for finding the flaws in Rogoff/Reinhart–published the article heard round the world: “Why Reinhart and Rogoff are wrong about austerity.” I am not disputing the results of their work but I am questioning a causal relationship that they note:
Posts Tagged ‘Rogoff/Reinhart’
Notes From Underground: A Day of Disconnects In Global Markets, Or a Ball of Confusion
April 22, 2013Notes From Underground: UPON FURTHER REVIEW OF THE FOMC MINUTES …. HMMM
April 3, 2012Today’s release of the FOMC minutes caused a market rethink about QE and it seems that the RALLY IN THE DOLLAR, SELLOFF IN PRECIOUS METALS AND FIXED INCOME MARKET means the market believes that the FED will restrain itself from another massive liquidity injection. The EQUITY market initially sold off by regained almost all of its losses by the close (NASDAQ ACTUALLY CLOSED HIGHER) as the STOCKS remain convinced that the FED WILL KEEP ZIRP FOR THE FULL EXTENDED PERIOD.