Was austerity an insurance policy?

Eric Lonergan
Austerity
2
Some very reasonable voices have argued that fiscal tightening post-financial crisis was a prudent form of insurance. According to this line of reasoning, although financial markets were treating the bonds of c...
the wealth illusion

The wealth illusion

Eric Lonergan
Finance & Asset Pricing
Is the stock market wealth effect a “wealth illusion”? In “Beyond Doughnuts” I argue that when interest rates are already low, further cuts may raise desired saving - the opposite effect to what most macro mod...
beyond doughnuts

Beyond doughnuts

Eric Lonergan
Theory & Other Problems
19
Two equations at the heart of all macro models have the wrong sign. This is the first one (in the clearest form I can find): If you don't like equations at all, ignore it. If you do, the following from the R...