Ülo Ennuste majandusartiklid


Just so cuttings in December of the Bad Year

 “Nice day, I said. Yes, she said, with her back to me.”

 J.M. Coetzee. 2008. Diary of a Bad Year. Vintage, p 5.


 “Is our present financial crisis the result of a mistake or a crime? Is it evidence of incompetence or of corruption? Is its remedy to be sought in committee rooms or in individual consciences?”

FT Christopher Caldwell. “Time for some morality trades“. Published: December 19 2008 19:37 | Last updated: December 19 2008 19:37.


Sir, Sushil Wadhwani argues (December 17 …) that policy mistakes have been made partly due to central bankers erroneously believing in the efficient markets theory. No market practitioner takes EMT seriously. They know it is not true.

I would go further than Mr Wadhwani: policy mistakes are still being made because of a misplaced trust in macroeconomics that is as untrustworthy as EMT.”

FT Mr Jason Streets. “The mistake of trusting macroeconomics too much.” Published: December 18 2008 02:00 | Last updated: December 18 2008 02:00.



„Sir, With reference to the letter by Mr Min Liao (“Market transparency should increase – not fall” October 15 2008), I’am in complete argeenment with everything he said in his attempt to rebut John Eatwell and Robert Reoch’s (Letters, October 7 “Greater transparency’ will not reduce systemic risk”) highly questionable tenet: given the uncertainty that speculation amplifies, greater transparency cannot resolve the matter of asset-price volatility, panics and crashes, and that greater transparency might equally well exacerbate the situation.
And, by the way, Min Liao’s concluding stament: “Killing information asymmetry in the financial market by increasing transparency is a must. I agree it is more difficult to achieve in today’s innovative market, but it is still a must.” – seems to be in the good harmony with the modern mainstreem economics as well.
Eg, Luca Colombo and Gianluca Femminis in this much debatable field have just recently given an elegant additional proof to the reasoning that tranparency and quolity of public knolwedge should be increased: … “.

Ülo Ennuste. „Letter to the Editor of the FT (in spe)”



 “The most important error, however, was to take too seriously the voices clamouring for a re-entry path to sound finance once the recession is over. Hence the projections showing a return to current budget balance by 2015-16. Hence, too, the assumption of a sharp but short-lived V-shaped recession. Thinking about alternatives led me to re-read a 1948 paper by Milton Friedman entitled A Monetary and Fiscal Framework for Economic Stability, reprinted in Essays in Positive Economics (1953).

I found this early essay much more helpful than his better-known later proposal for a constant growth of the money supply. The 1948 paper contained four proposals:


Third, a progressive tax system primarily based on the personal income tax. The rates set should be sufficient to balance government spending at a hypothetical level of national income corresponding to “reasonably full employment at a predetermined price level”.

 FT Samuel BrittanA framework for economic stabilityPublished: December 4 2008 20:21 | Last updated: December 4 2008 20:21


detsember 20, 2008 - Posted by | Uncategorized

2 kommentaari »

  1. […] Original post by BlogPulse Search Results for: finance […]

    Pingback-viide kirjutas Finance Blog » Blog Archive » https://yloennuste.wordpress.com/2008/12/20/296 | detsember 20, 2008 | Vasta

  2. Great post. I will read your posts frequently. Added you to the RSS reader.

    Kommentaar kirjutas Mike Harmon | detsember 20, 2008 | Vasta

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