Incoming links and arriving packages
- Tyler Cowen's book has finally arrived and I'm devouring it. Full review later.
- My bubble detection proposal was mentioned by Scott Sumner on TheMoneyIllusion this week, and there's also an interesting discussion of it on Baseline Scenario today.
- The Walker Review was published today, in interim form. You can read the report here and our submission to the process here. Some of the points on the moral hazard of limited liability, and the externalities imposed by the financial sector, echo our comments. Some of our other suggestions, for example that banks should use standardised product definitions to enable transparency of their asset mix and better decision-making by their creditors, have not been taken up but we may make another submission during the consultation period.
- As part of its "where economics went wrong" feature this week, The Economist has an interesting analysis of the efficient markets hypothesis and some departures from it, including the implications of behavioural economics. I have an article coming soon about this, so if you're interested in the subject do subscribe (top right corner of the page).