Since revisiting the Great Depression, its causes and consequences, seems to be in vogue again, it’s only fitting that David Glasner reviews what we learned about the gold standard and “the worst economic catastrophe since the Black Death of the 14th century.” It’s an old lesson, or at least it should be. But relearning lessons is what macroeconomics is all about, or so it seems.
Daily Archives: December 13, 2011
Slower But Still Growing Retail Sales In November
The pace of growth in retail sales slowed in November, but the overall trend was still up. We can debate the details of whether a lesser rate of growth is a sign of things to come, but if you’re looking for a smoking gun that screams recession you won’t find it in today’s update on consumer spending.
Another Partial Solution: Conditional Sharpe Ratio
“What this country needs is a good five-cent cigar,” Thomas Marshall (Woodrow Wilson’s vice president) once remarked. Updating the quip for 21st century finance might run as follows: Investors need a good risk metric. Alas, what’s needed and what’s available isn’t usually, if ever, one and the same in the money game. The next best thing is tapping several flawed metrics that are flawed in different ways.