A colleague (non-econ) asks: What's a "derivative" in plain terms? The plainest answer, yet not very helpful, is that derivatives are a Wall Street cross between the Frankenstein monster and the blob: they're a banker-made monster that's out of control and swallowing the global economy. But let's look at derivatives in a less inflammatory way. … Continue reading What’s A Derivative?
What’s a Recession? (officially)
Here's the definition of recession directly from the referees that make the official call, the National Bureau of Econ Research Bus. Cycle Dating Committee. Guess what, it's NOT "2 quarters of declining GDP" as numerous news media types and financial talking heads like to say (it hasn't been that since 1978, but they never let … Continue reading What’s a Recession? (officially)