Scientific Observations on Financial Markets
"The Use of Knowledge in Society" is an academic paper written by economist Friedrich Hayek, that was first published in 1945. At that time a clear counterargument to a planned and centralized economy, it is more actual than ever!
"Currency competition provided a stable monetary standard in those Swiss cantons that deregulated their financial systems after liberal revolutions in the 1830s and 40s."
"The authors find that extraversion and neuroticism significantly influence individuals' behavior in the experimental asset market."
"The author aims to demonstrate the workings of archetypes and proposes a measurement methodology designed to capture the subliminal forces that influence investment decisions."
"In the absence of evidence that increased trading led to either better prices or better risk sharing, we would have to conclude that the finance industry's share of GDP is about 2 percentage points higher than it needs to be and this would represent an annual misallocation of resources of about $280 billions for the U.S. "
It's well known that in the United States recessions are often preceded by an inversion of the yield curve. Is there any economic rationale for this?