Amidst the recent global market turmoil, I’d like to postulate that “We are all USD/JPY traders now.” That’s because USD/JPY has become the de facto measure of risk appetite of late, leading to correlated moves in equities, commodities, bonds, and even other currency pairs. The most salient short-term example of this phenomenon is the recent roller coaster ride in U.S. equities.
Our casual evidence indicates that government spending boosts gross domestic product during recessions. But we don’t really have a satisfying, formal, modern, rigorous, academic macroeconomic model that explains this fact.
When Dr. Alan Greenspan became chairman of the Federal Reserve, he moved from the world of rhetorical economics to the world of action. His most recent memoir attempts to make sense of how the financial crisis of 2008 came to be and how we can better predict future crises, along with the role of gold in a global monetary system.
The futures industry has had a tough couple of years, and with each storm there has been a dire warning that people will abandon it in droves. But the futures industry, particularly in Chicago, has faced many challenges and usually comes out the other end stronger through its ability to innovate.