In this show I argue that paying less attention to Mr. Trump and the White House probably won't do you any harm. It might even do you good. I also respond to the idea that no credible alternatives are currently being offered to the surge in new populism and its policy suggestions. I offer three concrete proposals. Finally, I try to make an impossible transition to a brief discussion about financial markets. I will put up some charts in the next few days, but I am not sure that much has changed. The queue of bears at the abattoir is long as ever.
Read MoreI am pressed for time this weekend, so instead of coming up with something entirely new, I thought that I'd do an addendum to my last post. I thought I dug relatively deep in that essay about whether global economic growth is accelerating. Obviously, it isn't easy to a give a clear answer to that question—we're doing economics after all—but the evidence from headline leading indicators suggest that the global economy picked up speed at the end of last year. Regular punters at this space, and my friends in the market, though, weren't impressed. Specifically, I was told that I was neglecting the spread between hard and soft data.
Read MoreI have a feeling that equity markets are setting a trap for investors, but I can't quite figure out which kind it is. Will the last bull be sucked in before the disappointment sets in, or are we now on a sustainable glide path towards new highs with maximum frustration for the sceptics? We didn't get any decisive clues last week. Equity volatility rose a tad, but ranges remain incredibly tight across a number of key asset markets. False breaks are guaranteed, and vol-sellers will continue to play cat and mouse with the heroes trying to straddle the ranges, playing for a breakout.
Read MoreSometimes projects are best left unfinished. I hope this is not the case here, but I concede that it has been way too long since the first part of my attempt to tell the story of microfoundations in macroeconomics. I have been stuck doing this for almost six months, and I still feel that I have only scratched the surface. In any case, this show gets to the meat of the discussion, and tries to get to grips with the origins of microfoundations in macroeconomics.
So, why would you want to listen to this? I can think of two reasons. You might be a graduate/PhD student in macroeconomics who is confused about where the models you’re teacher is stuffing down your throat comes from. Alternatively, you might work with macroeconomics either as a journalist, investor, or analyst and you’re struggling to reconcile what you see when you read a piece of academic research with what you see in the real world.
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