Notes on "Capitalism and Freedom" (Milton Friedman)

Capitalism and Freedom
by Milton Friedman

moderate monetary policy and moderate supply of liquidity, control inflation rate, a stable economic growth trend
small government
free market
(not finished)

Notes on "Why Are Excess Returns on China's Treasury Bonds So Predictable? The Role of the Monetary System" (by Fan, L. ; Tian, S. ; Zhang, C.)

Why Are Excess Returns on China's Treasury Bonds So Predictable? The Role of the Monetary System
by Fan, L. ; Tian, S. ; Zhang, C

one quarter ahead excess returns on China’s Treasury bonds with maturities of one to 5 years are highly predictable by a group of pre-determined variables

High predictability of bond excess returns suggests that investors can get a higher return on average by taking an active trading strategy

a monetary system can significantly influence the return dynamics in the bond markets in transitional economies such as China

to improve market efficiency, although the PBC still sets the official rates for nominal and real economic targets, it could take into account more the expectation for future interest rates and economic situations.

when the interest rates are expected to rise in the near future, current term structure of the official rates might be set with a larger positive slope; and when the future interest rates are expected to decrease, the term structure of current official rates might be set to be flat or even inverted.

Notes on “The Monetary System : Analysis and New Approaches to Regulation” (by Jean‐François Serval)

The Monetary System : Analysis and New Approaches to Regulation
by Jean‐François Serval

Not finished 

Reading notes on the improvement of productivity in developing countries

·        Title: 

Performance measurement: Does education impact productivity?

·        Author: Larbi‐apau, Josephine A. ; Sarpong, Daniel Bruce

·  

The impact of education on productivity in the agriculture sector

Postsecondary education is positively related to the productivity

Source: Maddison, A. 1987. Growth and slowdown in advanced capitalism economies: Techniques of quan· titative assessment. Journal of Economic Literature vol. 25 (2): Table A-12.

Vary between different countries and over time

·        Title: 

Higher Education, Productivity, and Earnings: A Review

·        Author: Pencavel, John

·        

Question the measure of the impact of education on earnings and productivity

The association between age and earnings for any schooling level rises because individuals augment the knowledge and training acquired from school by accumulating skills on the job; thus, the age-earnings association is better understood as an association between earnings and labor market experience. There is, indeed, an independent role of age (independent of work experience) because as an individual ages, his physiological and psychological characteristics evolve, and these may exert an effect on earnings. However, in many surveys, information on both an individual's labor market experience and his age are not collected so that their separate effects cannot be distinguished.

·        Title: 

Performance measurement: Does education impact productivity?

·        Author: Larbi‐apau, Josephine A. ; Sarpong, Daniel Bruce

·        

Research on developing countries, agriculture

Critics: Cobb-Douglass assumption of constant rate of returns

Top of Form

·        Title: 

Does Education Raise Productivity and Wages Equally? The Moderating Roles of Age, Gender and Industry

·        Author: Rycx, François ; Saks, Yves ; Tojerow, Ilan

Notes on "The United States dominates global investment banking: does it matter for Europe?" (By Charles Goodhart and Dirk Schoenmaker)

The United States dominates global investment banking: does it matter for Europe?
By Charles Goodhart and Dirk Schoenmaker
http://www.lse.ac.uk/fmg/workingPapers/specialPapers/PDF/SP243.pdf

the Vickers Report (2011)
Liikanen (2012)
European countries may find a global investment bank to be too large and too dangerous to support
Pisani-Ferry and Wolff, 2012
investment bank: bring together the suppliers and the demanders
US banks have very high market shares in Europe
the capital market union and the bank union are still under construction
the decline of the European banks may reduce the Europe's hand in the EU-US Regulatory Dialogue
the supervisory implications are not a problem for Europe
the large firms can take precautions themselves