John Carney of the Wall Street Journal has written a well researched thoughtful piece featuring my research on the connection between the stock market and the unemployment rate and he asks? Does the Economy Ruin the Stock Market or Does the Stock Market Ruin the Economy?
The ideas he talks about are discussed in much more detail in my new book Prosperity for All: How to Prevent Financial Crises coming this year from Oxford University Press.
O/T: Roger, what's your view of intertemporal budget constraints? Do you agree with David Glasner here in his latest post (and also about his views on microfoundations)?
ReplyDeleteDid your book foresee the current crises in asset markets?
ReplyDeleteLike your book, my book "Macroeconomics Redefined" published in June 2015 also relates recessions to the stock market or other asset market crashes that precede them.
In addition it predicted the current stock market fall and coming crash. This is what it said: "Fig 2.13 shows that in January 2015 the Y-o-Y growth of MC [Corrected Money Supply] was 7.4% and falling steadily. If it falls at the same rate it should be firmly in negative territory a year from now. If the past is any guide to the future, we can expect a collapse in one or more financial markets and a recession."