This document outlines the key topics that will be covered in a lecture on recent macroeconomic trends in the British economy. It discusses the causes and consequences of the global financial crisis that began in 2007, including the housing bubble, subprime lending crisis, and contagion effects. It then examines the UK policy response to the recession, including quantitative easing, fiscal stimulus measures, and bank bailouts. Finally, it considers debates around failures of macroeconomic models to predict the crisis and the path to economic recovery.
To
help senior executives weather this economic storm, the Economist Intelligence Unit has updated its
answers to some of the questions most frequently asked by clients, following the publication of the
four previous editions of Global crisis monitor. In answering each question, we outline our current
forecast, explain our thinking, and highlight any key risks or alternative scenarios.
Overview of GLOBAL FINANCE CRISIS and impact with market. Impacts of the US Financial Crisis on Indian Economy. FINANCE CRISIS, Subprime Mortgage Crisis, US Financial Markets, US Unemployment and Stock Market Returns, Treasury Rates and Inflation,
Breakfast with Matt Slaughter - The Global Economic Outlook: What's Next?tuckalumni
The Global Economic Outlook: What's Next?
Here in mid-2012, the global economy continues to expand but also to face significant risks. In Europe, the financial crisis of many banks and sovereigns has worsened in recent months. In the United States, growth in employment and output remain slow—and several difficult fiscal choices await the end of the year. Many BRIC-and-beyond countries continue to grow fast—but in China and India, most notably, growth has slowed the past year. This inaugural “Breakfast with Matt” will examine some of the main factors in the global economic outlook.
About Matthew Slaughter
Associate Dean for the MBA Program; Signal Companies Professor of Management
In addition to academic scholarship, Dean Slaughter writes general-interest items for the business and policy communities. Slaughter has also given speeches to and testified before both chambers of the U.S. Congress. His work and ideas have been widely featured in business media.
Global Financial Crisis and its impact on economic growthKruti Kamdar
What is Financial Crisis?
Definition: A situation in which the supply of money is outpaced by the demand for money.
This means that liquidity is quickly evaporated because available money is withdrawn from banks, forcing banks either to sell other investments to make up for the shortfall or to collapse. A financial crisis is often associated with a panic or a run on the banks, in which investors sell off assets or withdraw money from savings accounts with the expectation that the value of those assets will drop if they remain at a financial institution...
To
help senior executives weather this economic storm, the Economist Intelligence Unit has updated its
answers to some of the questions most frequently asked by clients, following the publication of the
four previous editions of Global crisis monitor. In answering each question, we outline our current
forecast, explain our thinking, and highlight any key risks or alternative scenarios.
Overview of GLOBAL FINANCE CRISIS and impact with market. Impacts of the US Financial Crisis on Indian Economy. FINANCE CRISIS, Subprime Mortgage Crisis, US Financial Markets, US Unemployment and Stock Market Returns, Treasury Rates and Inflation,
Breakfast with Matt Slaughter - The Global Economic Outlook: What's Next?tuckalumni
The Global Economic Outlook: What's Next?
Here in mid-2012, the global economy continues to expand but also to face significant risks. In Europe, the financial crisis of many banks and sovereigns has worsened in recent months. In the United States, growth in employment and output remain slow—and several difficult fiscal choices await the end of the year. Many BRIC-and-beyond countries continue to grow fast—but in China and India, most notably, growth has slowed the past year. This inaugural “Breakfast with Matt” will examine some of the main factors in the global economic outlook.
About Matthew Slaughter
Associate Dean for the MBA Program; Signal Companies Professor of Management
In addition to academic scholarship, Dean Slaughter writes general-interest items for the business and policy communities. Slaughter has also given speeches to and testified before both chambers of the U.S. Congress. His work and ideas have been widely featured in business media.
Global Financial Crisis and its impact on economic growthKruti Kamdar
What is Financial Crisis?
Definition: A situation in which the supply of money is outpaced by the demand for money.
This means that liquidity is quickly evaporated because available money is withdrawn from banks, forcing banks either to sell other investments to make up for the shortfall or to collapse. A financial crisis is often associated with a panic or a run on the banks, in which investors sell off assets or withdraw money from savings accounts with the expectation that the value of those assets will drop if they remain at a financial institution...
A round-up of the current state of the global and Australian economies. We focus on the the energy boom in the United States, the issues facing Europe and the challenges China faces in dealing with a property and credit bubble. We also highlight recent events with regards to the Australian stock market, In particular we discuss recent market fall, which are related to a weakening Australian dollar and the prospect of higher interest rates in the United States.
MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets.
In March 2016 we presented an update on the Australian and global economic situation and the current state of financial markets to our clients. We covered the market movements over the past 12 months, taking a look at how the underlying company fundamentals are generally better than stock prices are indicating. We also considered some of the major global issues, including the increase in debt levels in China and the prospect of higher interest rates in the United States.
In our March 2015 presentation on the state of the Australian and global economy, we discuss the key themes of the year ahead. Specifically, we look at the prospect of rising interest rates in the United States, the impact of quantitative easing in Europe and the ongoing economic slowdown in China. We also consider the state of the Australian economy and how financial markets are positioned.
"Show me the incentive and I'll show you the outcome" – Veripath Farmland Funds Q4 Investor Letter: Investing in a World of Financial Repression, Negative Real Rates, Valuation “Challenges” and Inflationary Forces.
Do G7 governments have an incentive to attempt to keep inflation higher for longer and real rates lower for longer? Negative real rates across a broad spectrum of credit assets are a graphic sign that we inhabit a world of financial repression orchestrated by central banks at the formal/informal behest of sovereign borrowers. In a normally functioning market, lenders do not provide capital to borrowers for negative yields – i.e., they do not pay for the privilege of lending. It goes without saying we are not in a normally functioning market.
A round-up of the current state of the global and Australian economies. We focus on the the energy boom in the United States, the issues facing Europe and the challenges China faces in dealing with a property and credit bubble. We also highlight recent events with regards to the Australian stock market, In particular we discuss recent market fall, which are related to a weakening Australian dollar and the prospect of higher interest rates in the United States.
MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets.
In March 2016 we presented an update on the Australian and global economic situation and the current state of financial markets to our clients. We covered the market movements over the past 12 months, taking a look at how the underlying company fundamentals are generally better than stock prices are indicating. We also considered some of the major global issues, including the increase in debt levels in China and the prospect of higher interest rates in the United States.
In our March 2015 presentation on the state of the Australian and global economy, we discuss the key themes of the year ahead. Specifically, we look at the prospect of rising interest rates in the United States, the impact of quantitative easing in Europe and the ongoing economic slowdown in China. We also consider the state of the Australian economy and how financial markets are positioned.
"Show me the incentive and I'll show you the outcome" – Veripath Farmland Funds Q4 Investor Letter: Investing in a World of Financial Repression, Negative Real Rates, Valuation “Challenges” and Inflationary Forces.
Do G7 governments have an incentive to attempt to keep inflation higher for longer and real rates lower for longer? Negative real rates across a broad spectrum of credit assets are a graphic sign that we inhabit a world of financial repression orchestrated by central banks at the formal/informal behest of sovereign borrowers. In a normally functioning market, lenders do not provide capital to borrowers for negative yields – i.e., they do not pay for the privilege of lending. It goes without saying we are not in a normally functioning market.
The major reasons for the recession that hit worldwide especially the US and Eurozone.
The subprime Crises, US housing Crisis with Facts and Figures and The Fix.
After the storm- Global Financial Crisis 27 aug 2010Gaurav Sharma
Global Financial Order - Reasons for Crisis, Current Status, The BIG Shifts- Public Debt, Global De-leverage, Wealth Concetration & Creation.
Talk Delivered at Fore School Of Management, new Delhi
QE has become an integral part of monetary policy in a number of countries over the last ten years. Essentially it has been part of a strategy of cheap money brought in by central banks as a policy response the 2007-08 Global Financial Crisis amid fears of a return to deflationary depression experienced in the 1930s. Economic historians will surely debate the role of Quantitative Easing (QE) in staving off a depression for many years to come.
The Financial Situation in the World by Wouter van der StokFelix Meißner
The Financial Situation in the World” by Wouter van der Stok
Mr. Van der Stok will present a brief history of the present global Economic/Financial Crisis, an analysis of future developments of this Crisis over the next 3 to10 years and how this will affect, without any exception, "me" as a person, family, business, city, nation and groups of nations
HERE YOU FIND THE RECORDING:
http://tinyurl.com/5vcl5hd
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
Yes of course, you can easily start mining pi network coin today and sell to legit pi vendors in the United States.
Here the what'sapp contact of my personal vendor.
+12349014282
#pi network #pi coins #legit #passive income
#US
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the what's app number of my personal pi vendor to trade with.
+12349014282
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the what'sapp number of my personal pi merchant who i trade pi with.
Message: +12349014282 VIA Whatsapp.
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the what'sapp number.
+12349014282
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
The WhatsPump Pseudonym Problem and the Hilarious Downfall of Artificial Enga...
Ec 111 week 5(2)
1. EC-111 British Economy
Recent UK Macroeconomic
Trends
Dr Catherine Robinson
F26, Richard Price Building
Office Hours: Mondays 10.30-11.30 and Thursdays 9.30-10.30
Appointments: c.robinson@swansea.ac.uk
2. Outline for this week‟s lectures…
Macro policy and the financial crisis
What caused the financial meltdown of 2007?
What were the consequences?
How to recover from the global recession?
Does this mean that existing macro models were inadequate?
Is the triple-dip recession likely? (TODAY WE FIND OUT)
Note the global nature of this week
In part a result of the problem
Also, increased globalisation means the UK cannot be
looked at in isolation
Week 5:1
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3. What is a recession?
2 consecutive quarters of negative GDP growth
Caused by monetary policy being too tight
Policy response: loosen monetary policy
Lower interest rates
A DEPRESSION on the other hand:
A decline in real GDP that is greater than 10%
A recession that lasts more than 3 years
An asset/credit bubble bursting
Credit contraction followed by decline in price levels
Policy response:
Fiscal stimulus to encourage spending; infrastructure projects
Week 5:1
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4. The Financial Crisis of 2007
The economic slow down began in 2006..and in the US
Relatively high risk borrowers in the US lost their jobs
Unable to pay their high monthly repayments
Interest rates were rising too because of the slowdown
Increased number of defaults led to concern about the
„sub-prime‟ market for loans
“The mother of all housing bubbles” (Krugman 2009)
Week 5:1
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5. Contagion
By 2010, house prices (and share prices) in the US had
fallen by 29% from their peak in 2007
Reducing economic growth
Caused a big drop in UK inter-bank lending, with
knock-on effects on other sectors such as
manufacturing
Contagion
as there was more and more scrutiny on the lending
practices of financial intermediaries
Week 5:1
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6. Causes: Financial
„innovations‟
The Big Bang led to deregulation…
Deregulation of the financial sector led to innovations in
products:
Short selling
Over the counter derivatives
Securitisation
Proprietary trading
Speculation
SHADOW BANKING
Week 5:1
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7. Structured Investment Vehicles
(SIVs)
innovative ways to package debts
In such a way as to obscure the risks associated by
creating a portfolio of liabilities
some of which were the sub-prime mortgages
Some of which were short term debts (with comparatively
little risk)
Week 5:1
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9. Realisation – followed by PANIC!
Early 2007:
saw 4 mortgage providers in the US file for bankruptcy
Reported that sub-prime lenders were 5 times more likely to incur
defaults
Bear Sterns lost 90% of its sub-prime loans and filed for
bankruptcy
August to November 2007:
More banks collapsed BNP PARIBUS froze investment funds
$300bn is pumped into the global system to maintain liquidity
Northern Rock collapses
Poor financial announcements in the US
Freddie Mac and Fannie Mae announce record losses
Week 5:1
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10. And the bad news
continued…2008
Further write-downs and losses announced, interest rates
slashed to record low levels
Northern Rock nationalised
In July in the US Indy Mac Bank collapses, the second
largest bank failure ever
Lehman Brothers attempts to sell 50% of its shares to south
Korea or China. Fails. In September enters bankruptcy, the
largest in USA history
In the same month US Government takes control of Freddie
Mac and Fanny Mae
Merrill Lynch, Bank of America, Bear Sterns and Lehmann
Brothers have all by now ceased to trade
Week 5:1
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11. Bank Bailout
Events unfolded in such a way as to the extent to which various
banks were exposed to the sub-prime market via these SIVs
Market sentiment ruled – investors panicked
Required de-leveraging; savings required to pay some debts
For the first time since Victoria‟s reign, there was a run on a UK
bank
Freddie Mac and Fannie Mae in the US were the initial lenders
Northern Rock in the UK
But all banks had some degree of exposure
Bank Bailout
Problem was, banks were so big, it wasn‟t always possible for
countries to save them
Aggressive, orchestrated policy required by US, UK and EU.
Week 5:1
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12. Crisis management
Warren Buffett injected $5bn into Goldman Sachs
Lloyds rescues HBOS
US government provided $700bn to help banks recapitalise
Bradford and Bingley was nationalised in the UK
UK government saves RBS
US Fed paid $800bn to 21 US banks
UK Government announced £50bn to buy stakes and issue debt
guarantees (up to £250bn)
Record low interest rates
Week 5:1
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13. So, the UK policy response
•To emphasise international co-operation and co-ordinated
fiscal and monetary policy responses to help move the UK
and world economies out of recession
•a number of levers during the recession:
Bank base rate reduced to 0.5 per cent
Bailing out of some banks and finance to support the balance
sheets of the banks
Value Added Tax temporarily reduced from 17.5% to 15%
Quantitative easing of £200billion – Asset Purchase Facility by
which the Bank of England can buy corporate bonds
Car scrappage scheme
Week 5:1
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14. Into 2009…heading into
double dip…
But the market is still jittery (Flash crash of the NYSE in
May 2010)
International organisations meeting to define standards
in banking
BASEL III
Contagion means that currencies are suffering
Euro problems in Ireland, Greece and now Portugal and
Italy…
Cyprus problems in the news recently
Week 5:1
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15. How can we ensure this mistake
doesn‟t happen again?
Regulate the financial sector more effectively
Commission a report – the Independent Commission on Banking
Sir John Vickers
Report published in September 2011
recommendations on ring-fencing domestic retail banking, 1/6th to
1/3rd of banking assets to be within the ring-fence
Competition in banking sector needs to be improved
“Future of Finance”, 2010
Report by LSE stars – Adair Turner, Andy Haldane and lots of
others
Highlights that central banks and governments should shoulder
some of the responsibility for the failure – argue as yet, this hasn‟t
happened
Week 5:1
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16. Management of the financial
system
Increasingly understood that the financial system had
changed beyond recognition from the 1980s
Many banking investments were obscured, bordering
on illegal (Barclays fined £500m by the UK treasury)
Week 5:1
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17. Why are banks regulated in the
first place?
Goodhart (2010)
Market failures:
Monopoly control
Asymmetric information
Externalities (social costs to bankruptcies)
Week 5:1
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18. What has happened to our macro
variables?
Source: Gregg and Wadsworth
(2010)Week 5:1
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19. International variations
• Gregg and Wadsworth (2010) group countries into 5
categories on the basis of changes in the GDP and
unemployment over the recession:
Those with small falls in employment relative to GDP (UK
and Sweden)
Those with small falls in employment relative to
GDP, having introduced employment subsides
(Italy, Germany, Netherlands and Japan)
Those with similar employment and GDP falls (France)
Those with larger employment falls than GDP (US, Spain
and Ireland)
Those with little fall in GDP (Australia)
Week 5:1
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20. Why did the UK labour market hold
up?
Employers entered the recession in fairly good financial shape
Able to absorb some of the downturn without shedding jobs
Total hours worked have fallen sharply and the share of part-timers
risen
Workers accepted nominal wage moderation early on in the
recession
increased chances of finding work if they are made redundant
• The impact on productivity (and international competitiveness) and
public finances has been large; hence the cuts
Week 5:1
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21. Cost of crisis
The level of debt in most Western Economies is a
direct result of bank bailouts
Severe recession
Bank of England policy of “quantitative easing”
Exchange rate system in Europe under threat
Greece most obviously
Irish IMF loan and the austerity measures
Italy, Spain and Portugal also under pressure
Week 5:1
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23. And now the Euro…
Weaker countries within the Eurozone have suffered –
especially Greece
No longer considered to be a good debtor
Agreed to a range of austerity measures for the
foreseeable future in exchange for Euro bailout to prevent
national bankruptcy
A wider EU problem
The ECB issued €530bn of cheap loans for Banks to
ease liquidity concerns
Week 5:1
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24. Failures of macro models?
How come no one saw this coming?
Well, some did (but not as many as now claim they did)
Housing market had been overvalued for years in the UK
Savings far too low
Did our macroeconomic models let us down?
Over-reliance on inflation targeting?
Argued that MONEY is a glaring omission from existing
new Keynesian macro models
Week 5:1
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25. There will be other
mistakes…
Macroeconomic models will not cover all eventualities
Abstractions from the real world
Simplifications
BUT still powerful tools
A new focus on risk?
The role of credit ratings are also under scrutiny
Week 5:1
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26. Road to recovery
Osborne:
Treat the recession
Tighten the fiscal belt – balance the budget
Reduce government spending – rebalance the UK economy
Encourage growth through private sector enterprise and growing
exports
Regulatory reform of the financial sector
Balancing the need for reform against the footloose nature of financial
intermediaries
Balls:
Treat the depression
Looser fiscal policy to encourage growth
Short term increase in government spending to get the economy back
on track
Tougher stance on financial sector reform
Is the second policy approach viable?
Week 5:1
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27. References
Griffiths and Wall (2012) Applied Economics, Chapter 30 for the basics
Crafts and Fearon (2010) ‘Lessons from the 1930s Great Depression’, Oxford
Review of Economic Policy, 26(3), 285-317
Drinkwater, Blackaby and Murphy (2011) ‘The Welsh Labour Market
Following the Great Recession’, WISERD Policy Brief
A play by Julian Gough: goat futures explains the housing bubble
For up to date information, have a look at the Economist blog:
http://www.economist.com/blogs/blighty
Deeper understanding in the current debates going on:
Finance for the Future, LSE Report of 2010, available at
http://www.financeforthefuture.org.uk.
This is really tough stuff though, so just read the summary!
Week 5:1
27