Chasing trends is a dangerous game (pdf)
ft.com,16 October 2013
Dr Paul Woolley has written an article for the Financial Times looking at why momentum is a losing strategy for long-term investors.
Momentum investing is bad for your wealth (pdf)
ft.com, 12 July 2013
Paul Woolley (founder of the Paul Woolley Centre) wrote this article for the Financial Times exploring why the bulk of investment is now conducted without reference to economic value.
Long-term battle to expel short-term risk
ft.com ,13 March 2013
In this article for the Financial Times, Paul Woolley (Paul Woolley Centre) argues that risk metrics should be based on asset cash flows. A subscription to The Financial Times is needed to view this article.
Towards a more procyclical financial system
voxeu.org , 6 March 2013
Jon Danielsson (SRC/FMG, LSE) writes this article arguing that heterogeneity is a good thing. It leads to countercyclicality, and thereby reduces instances of procyclical price movements. Both the Basel Committee and the European Banking Authority have indicated that they are troubled by heterogeneity and are seeking to rectify the problem. Their conclusion is plainly wrong.
Europe's sham banking union
The Wall Street Journal , 31 January 2013
Charles Goodhart (FMG, LSE) and Sony Kapoor (Visiting Fellow at LSE) write "After a year in which European Union policy makers spent much time obsessing about banking union, it is time to take stock of the discussion. The question today is not about the intellectual case for having unified banking supervision within a single-currency area such as the euro zone. That case is still strong. Rather, it is about whether this particular exercise will deliver the goods—whether it will help tackle the economic crisis that still looms large over Europe. To access this article you will need to register with The Wall Street Journal.
Central banks walk inflation's razor edge
ft.com, 31 January 2013
The exteriors of major central banks may be solid marble and doric columns, but inside, monetary policy remains a work in progress. Those inside have to craft a policy framework that makes the most efficient use of instruments of varying potential effectiveness and shop responsiveness, but not subvervience, to external political pressures. Writes Charles Goodhart in an article for the Financial Times. To access this article you will need to register with The Financial Times.
Monetary targetry: might Carney make a difference?
voxeu.org, 22 January 2013
The Bank of England’s Governor-elect has argued for a switch to a nominal GDP target. This column, co-written by Professor Charles Goodhart (FMG, LSE) points out problems with nominal GDP targets, especially in levels.