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Jul
15th
Thu
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Herd Behaviour in Financial Markets and Model Agencies

Great parallel between financial market and the modeling world on social / behavioral similarities: how supermodels are like toxic assets

In the face of complex decisions in a highly uncertain environment, modeling agency clients (and financial investors) pick what everybody else is choosing, triggering the social-induced feedback loop (“Matthew effect” or “the rich get richer”).

Tags: finance   social  
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Tags: finance   economics   google  
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Tags: finance   shadow banking   banks   deflation   deleverage  
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Jul
14th
Wed
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Tags: paul krugman   austrian   keynesian   keynes   economics   depression   deflation   money  
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Jul
13th
Tue
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Tags: real estate   finance  
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Jul
12th
Mon
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Tags: spain   UK   unemployment   economics   wage   competitiveness  
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Tags: economics   financial balance   current account  
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Jul
11th
Sun
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Tags: entrepreneurship   google   zynga   games   facebook  
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Jul
9th
Fri
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Tags: entrepreneurship   internet   marketing   SEO  
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Jul
8th
Thu
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In the figure below, I show two series. The red line (left scale) is nonresidential fixed investment spending – basically, business investment — as a percentage of GDP, from the BEA. The blue line (right scale) is the output gap — the percentage difference between real GDP and the CBO’s estimate of potential real GDP. (via Why Isn’t Investment Higher? - Paul Krugman Blog - NYTimes.com)

In the figure below, I show two series. The red line (left scale) is nonresidential fixed investment spending – basically, business investment — as a percentage of GDP, from the BEA. The blue line (right scale) is the output gap — the percentage difference between real GDP and the CBO’s estimate of potential real GDP. (via Why Isn’t Investment Higher? - Paul Krugman Blog - NYTimes.com)

Tags: business   finance   gdp   economics   investment   paul krugman  
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