Best Of the Web
Japan does MMT? Answer is no. “Japan shows that all of mainstream theory and policy is wrong. It is the best example of a country that always chooses the anti-MMT policy response to every ill that ails the country.”
Alpha Opportunities in European Fixed Income – Without Adding Risk PIMCO likes earning roll-down in the German curve, Danish mortgages and trading the futures-cash basis in German bonds.
Identity, beliefs, and political conflict. Using social psychology, authors find that globalisation clusters society in a nationalist versus cosmopolitan cleavage instead of the traditional left versus right. This may dampen demand for redistribution despite potential increases in income inequality.
Market Valuation, Inflation and Treasury Yields: Clues from the Past and Is the Stock Market Cheap? Features some nice equity valuation charts. The Author concludes valuations are unchartered territory (20+ p/e with yields below 2.5%), but Fed support could keep it there
Concentration in cross-border banking BIS quarterly finds “A small number of very large cross-border links dominate global cross-border bank credit. Even after the Great Financial Crisis (GFC), concentration in interbank links remained high.”