Met friends for lunch today – five of them plus yours truly. They are with the financial industry in different capacities. Important take-aways
(1) European banks’ de-leveraging is a big headwind for Emerging markets, Asia included
(2) Wringing hands on Indonesian monetary policy moves
(3) Prof. Avinash Dixit’s books on game theory are accessible reads. I think my friend meant these three titles:
- Games of Strategy, with Susan Skeath, New York: W. W. Norton, 1999, third edition 2009
- Thinking Strategically: The Competitive Edge in Business, Politics, and Everyday Life, with Barry Nalebuff, New York: W.W. Norton, 1991
- The Art of Strategy: A Game-Theorist’s Guide to Success in Business and Life with Barry Nalebuff, New York: W. W. Norton, 2008
(4) I told them about Avinash Dixit’s work being the building block for Paul Krugman’s work on International trade. This is what Tyler Cowen wrote on his blog on PK winning the Nobel Prize:
Who are the big losers? Avinash Dixit and Elhanan Helpman and Maurice Obstfeld have to feel their chances for the prize went down significantly. (Link here). You can check out these two links too, if you are interested in this topic.
His (Paul Krugman’s) columns evoke so much strong reactions on either side that it is easy to forget the substantive and substantial work he has done elsewhere.
Here is Prof. Dixit’s praise for Krugman written long time ago.
(5) The world economy is rebooting. A habitual spender, a habitual saver and a habitual investor – US, Japan and China respectively – are being forced to abandon their ways. Consequences remain unknown.
(6) Technically, the US dollar is forming a big bottom. (I am not so sure Mr. Bernanke considers his work done in debasing the US dollar)
(7) What is the exchange rate for the new DEM vs. Euro? Better than where Swiss franc was before they drew that fateful line in the sand?
(8) www.academicearth.org is a marvellous resource. (I just took one look at it now. I agree). There was praise for Khan Academy too.