Edward Hadas

Bond markets and failed theory

June 5, 2013

In theory, interest rates are one of the jewels of capitalist economies. The theory has been well tested over the past half-century, and it has failed. Interest rates have become a mark of shame. The recent increase in yields on government bonds in much of the world – by a quarter, from 1.65 percent to 2.1 percent since the beginning of May for 10-year U.S. government bonds – is only the latest chapter in a long and depressing story.

The menace of financial markets

February 20, 2013

Financial markets are unstable, unhelpful and often immoral. They should be kept under better control.