Monetary Policy
In today's bull market, the bezzle, or "inventory of undiscovered embezzlements," isn't stocked with Ponzi schemes and the like. Rather it is built on the notion that risky assets have become practically risk-free.
“You don’t have a lot to work with when the next discussion around the table is negative interest rates,” says Danielle DiMartino Booth.
Has the bubble in credit markets achieved new momentum? Edward Altman weighs in.
“Most people tell me that long-run equity valuation data is meaningless," says Russell Napier. "I think they’re wrong.”
"The thing about fixed income is avoiding the downside," says PGIM's Gregory Roberts. "We get penalized for losses and get very little for getting things right."
The introduction of the Skill Ratio by Daniel Blais, CFA; Brodie Gay's examination of how inflation is underreported; and an exploration by Ziad Abou Gergi, CFA, of the manager-selection process, are among the top posts from March.
Published estimates suggest inflation has been nonexistent despite extended, near-zero interest rates and a near doubling of the M2 private money supply since the recession.
What were the leading stories from Enterprising Investor in January?
Switzerland will vote on a measure to end fractional reserve banking in 2018. Known as the Vollgeld, or "Full Money," Initiative, this proposal could transform modern finance as we know it. Jason Voss, CFA, curates a helpful reading list.
In this important contribution to the literature, noted monetary macroeconomists argue that the global financial crisis of 2007–2008 was caused by a crash in money growth.