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Posts Tagged ‘Books’

How to Speak Money – a new book from John Lanchester

September 14, 2014 Leave a comment

Will Self called John Lanchester’s previous book on money and banking – the bestselling ‘Whoops!’ – as ‘the routemap to the crazed world of contemporary finance we’ve all been waiting for’. If ‘Whoops!’ was the routemap, then his new book ‘How to Speak Money’ is the phrasebook. It shows you that it’s possible to learn to speak the language of money. Possible, desirable and perhaps even necessary if we’re to avoid feelings of complete helplessness and bafflement when confronted with the big financial forces that shape our lives.

Diane Coyle – Keynote Address

July 3, 2014 Leave a comment

GDP CoyleJust attending the New Zealand Association of Economists 55th Annual Conference and it was great to hear Diane Coyle present as one of the Keynote speakers. I was originally alerted to her work by Geoff Riley – an economics teacher at Eton College and co-founder of the Tutor2u website – while I was on a Fellowship. He recommended her book ‘The Soulful Science’ back in 2007. The book aims to show how the discipline of economics has changed over the last decade and brings together economic growth and human behaviour.

Her talk was based on the research into her new book GDP: A Brief but Affectionate History. She goes right back to the Domesday Book which was a manuscript record of how much each landholder in England and Wales had in land and livestock, and what it was worth. This was completed in 1086 on orders of William the Conqueror. Further mentions of Adam Smith and Karl Marx and what they tended to focus on as an economic indicator. Interesting to note that Holland has included prostitution in its GDP calculations and that the Italian statistical body recently announced that it will include prostitution, drug trafficking, and alcohol-and-tobacco in its calculation of GDP. However Italy is just complying with international accounting standards and reporting illegal economically productive activity is required under European Union rules. But as it is part of the informal economy how do you actually measure drug deals, prostitution etc and therefore its contribution to a country’s GDP?

There is also the intangible economy – how do you measure the output of Vodafone v Skype? Also how are sustainability, variety and innovation measured? If her talk was anything to go by her book seems well worth it.

Categories: Growth Tags:

Diane Coyle in Auckland

June 30, 2014 Leave a comment

NZAE ConfThis year the annual conference of the New Zealand Association of Economisst takes place at the Auckland University of Technology from the 2nd – 4th July. One of the keynote speakers is Diane Coyle from the UK who runs the consultancy Enlightenment Economics. She also has a great website called ‘The Enlightened Economist’ in which she reviews economics and business books. She is the author of several books, including recently:

GDP: A Brief and Affectionate History (Princeton University Press, 2014 forthcoming),
The Economics of Enough (Princeton University Press 2011)
The Soulful Science (2007),

She also edited ‘What’s the Use of Economics: Teaching the Dismal Science after the Crisis’ self-questions economics by economists of a discipline that did not anticipate the crisis and has barely changed since despite its self-evident shortcomings.She was previously Economics Editor of The Independent and before that worked at the Treasury and in the private sector as an economist. She has a PhD from Harvard.

Below is a link to the conference website:

NZAE Annual Conference

Categories: Eco Events Tags:

Flash Boys – Michael Lewis’ new book

April 6, 2014 Leave a comment

Here is a video from a PBS interview with Michael Lewis talking about his new book “Flash Boys: A Wall Street Revolt.” Much of the stock market trading that occurs today is done with computer servers, completing hundreds of millions of orders in a system known as high-frequency trading. Author Michael Lewis has made this practice the subject of his latest book.

Click below to view an adaptation from The New York Times magazine.
The Wolf Hunters of Wall Street

Diane Coyle in Auckland

January 24, 2014 Leave a comment

NZAE ConfThis year the annual conference of the New Zealand Association of Economisst takes place at the Auckland University of Technology from the 2nd – 4th July. One of the keynote speakers is Diane Coyle from the UK who runs the consultancy Enlightenment Economics. She also has a great website called ‘The Enlightened Economist’ in which she reviews economics and business books. She is the author of several books, including recently:

GDP: A Brief and Affectionate History (Princeton University Press, 2014 forthcoming),
The Economics of Enough (Princeton University Press 2011)
The Soulful Science (2007),

She also edited ‘What’s the Use of Economics: Teaching the Dismal Science after the Crisis’ self-questions economics by economists of a discipline that did not anticipate the crisis and has barely changed since despite its self-evident shortcomings.She was previously Economics Editor of The Independent and before that worked at the Treasury and in the private sector as an economist. She has a PhD from Harvard.

Below is a link to the conference website:

NZAE Annual Conference

Categories: Eco Events Tags:

Smarter Spending

January 21, 2014 Leave a comment

Happy MoneyA recently released book that I read in the holidays entitled “Happy Money” provides new research into the science of spending. The authors (Liz Dunn and Mike Norton) explain how you can get more happiness for your money by following five principles:

1. Buy Experiences

Owning material things from expensive homes to luxurious cars turn out to provide less happiness than holidays, concerts and special occasions.

An exercise that they suggest is to think of purchases you’ve made to increase your happiness. Consider one purchase that was a tangible object that you could keep – iPhone, clothes etc. Then think of a purchase you made that gave you a life experience – holiday, concert or a meal out. Remembering the experience brings to mind friends and family, sights etc. Which of these purchases made you happier?

2. Make it a Treat

For residents in a city with famous tourist sites there is the inclination to never visit them as they are always there. When something is always there people are less likely to appreciate it. However limiting our access to something may renew our capacity for pleasure. Rather than giving up something completely the authors advocate turning our favourite things into treats – afternoon Cappuccino. This also applies to driving a luxury car – research has shown that driving a luxury car provides no more happiness than an economy model.

3. Buy Time

By getting other people to do those dreaded tasks money can transform the way we spend our time, freeing us to pursue our passions. A lot of people fail to use their money to buy themselves a happier time. When people focus on thier time rather than their money, they act like scientists of happiness, choosing activities that promote well-being. For companies this principle entails thinking about compensation in a broader way, rewarding employees not only with money, but with time.

4. Pay Now, Consume Later

Today with the availability of credit access to goods is instantaneous. However by putting this powerful principle in reverse – paying first and taking delivery later – you can buy more happiness as delaying consumption allows spenders to reap the pleasures of anticipation without a short period of happiness. Holidays provide more happiness before they actually occur. Research shows that waiting for something – a chocolate – makes it taste better when we get it.

5. Invest in Others

Bill Gates and Warren Buffet pledged the majority of their wealth to charity and they are very happy with that decision. New research shows that spending on others provides a bigger happiness boost than spending on yourself. Investing in others can make individuals feel healthier and wealthier.

Categories: Behavioural Economics Tags:

A2 – Developing Economies and the Global Financial Crisis.

August 13, 2012 Leave a comment

Just completing the Unit 6 of the A2 course and updating my notes on the current issue of debt hangover from the Global Financial Crisis. The FT recently reported that there are worrying signs of private sector credit in emerging economies.

Turkey Brazil Russia - private sector credit in year to April 2012 up 20%.
China – private sector credit in year to April 2012 up 15%.
Poland – private sector credit to GDP 49%

This is seen as inevitable if an economy is going to grow but there needs to be investment in capital which will ultimately increase a country’s productive capacity and long-term development. However a lot of this borrowing has gone into consumer goods rather than capital infrastructure projects. This is especially worrying in Brazil as the transport system needs a major overhaul if it is going to cope with the demands of the Olympic Games in 2016. According to the FT misdirected credit can produce two damaging consequences:

1. When too much money is directed into the housing market bubbles can occur – subprime for instance and more recently China.
2. Poor credit allocation can harm economic growth, both in the short and in the long term.

Although China and Brazil has loosened monetary policy this needs to be accompanied by a process that ensures it is directed to where it is most needed. Jeffrey Sachs in his book “End of Poverty” talked about how a country needs six major kinds of capital:

1. Human capital: health, nutrition, and skills needed for each person to be economically productive

2. Business capital: the machinery, facilities, motorized transport used in agriculture, industry, and services

3. Infrastructure: roads, power, water and sanitation, airports and seaports, and telecommunications systems, that are critical in-puts into business productivity

4. Natural capital: arable land, healthy soils, biodiversity, and well-functioning ecosystems that provide the environmental services needed by human society

5. Public institutional capital: the commercial law, judicial systems, government services and policing that underpin the peaceful and prosperous division of labor

6. Knowledge capital: the scientific and technological know-how that raises productivity in business output and the promotion of physical and natural capital

Figure 1 shows the basic mechanics of saving, capital accumulation, and growth. We start on the left-hand side with a typical household. The household divides its income into consumption, taxation, and household savings. The government, in turn, divides its tax revenues into current spending and government investment. The economy’s capital stock is raised by both household savings and by government investment. A higher capital stock leads to economic growth, which in turn raises household income through the feedback arrow from growth to income. We show in the figure that population growth and depreciation also negatively affect the accumulation of capital. In a “normal” economy, things proceed smoothly toward rising incomes, as household savings and government investments are able to keep ahead of depreciation and population growth.
Source: The End of Poverty: How we can make it happen in our lifetime by Jeffrey Sachs (2005).

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