A number of visualizations of High Frequency Trading at youtube. In this video: Watch the stock of Mylan, Inc (symbol: MYL; market cap $11.6 Billion) drop 2.8% in the blink of an eye (200 milliseconds), wiping out $325 Million in shareholder equity. More at nanex.net.
John Lanchester on the urgency of reform to the banking sector at the London Review of Books: Another global crisis is coming, as sure as Christmas. The euro? China? Who knows – but it’s coming, and when it does, we need our banks to be safe, for all sorts of reasons, including, right at the…
At priceonomics, a discussion of a classic psychological experiment goes on to consider the social forces which encourage the work ethic: …when South Korea and China were mired in poverty, Westerners described their people as hopelessly lazy, with a culture that did not value industriousness and taking initiative. As time has shown, however, this is not…
In his ‘Theory of Economic Development’ (1911), Joseph Schumpeter notes the importance of innovation and the role of the entrepreneur in economic growth. Specifically, the importance of carrying out ‘new combinations’ is emphasised, yet whilst the innovative entrepreneur has a creative role here, Schumpeter notes in later work that, I have always emphasized that the…
In spite of much ado about inaccurate calculations in Reinhart and Rogoff’s influential ‘Growth in a Time of Debt’ (e.g. ‘European austerity programmes based on an excel error?’), Matthew Klein at Bloomberg argues that… When it comes to policymaking, this news changes very little: the Reinhart-Rogoff paper was always a flimsy justification for fiscal austerity.…