Recent Articles
Interesting Times
by Andrew Smithers | April 14, 2024 | News, Papers | 0 Comments
We Live in Interesting Times. The Stock Market’s Response to Changes in Commercial Banks’ Reserves. Recent Experience. The US stock market has moved since mid-2020 with changes in the level of commercial banks’ reserves with the Federal Reserve, as Chart...
How Economic Theory Went Wrong
by Andrew Smithers | March 1, 2024 | News | 0 Comments
American Affairs • Spring 2024 The full article is available here. american_affairs_article_spring2024Download
Improving Economic Policy
by Andrew Smithers | July 3, 2023 | News, Papers | 0 Comments
World Economics • Vol. 24 • No. 2 • April–June 2023 Key Points The consensus model (CM) holds that there is only one equilibrium that needs to be maintained for economic stability. This follows, as a matter of logical necessity, from the model's fundamental...
Economic Management in a multiple Equilibria Economy PIDE Webinar
by Andrew Smithers | June 27, 2023 | News, Video | 0 Comments
Economic Management in a multiple Equilibria Economy Pakistan Institute of Development Economics (PIDE) hosted a webinar on the topic withSpeaker: Andrew Smithers, Founder Smithers & Co, Author. Moderator: Dr. nadeem Ul Haque (Vice Chancellor - PIDE)
Extending the liabilities’ time horizon is key to pensions reform
by Andrew Smithers | June 14, 2023 | News, Press | 0 Comments
From Andrew Smithers, London W8Published in the FT 14 June, 2023 Martin Wolf is correct when he writes that “reforming the failing pensions system is a priority” for the UK (Opinion, June 12). The essential change is to the economic theory used. To achieve the full...
Zombie Companies, Low Investment and Low Interest Rates
by Andrew Smithers | January 20, 2023 | News, Papers | 0 Comments
World Economics • Vol. 23 • No. 4 • October–December 2022 Key Points The number of zombies has risen this century and growth has slowed. Both have a common cause in the bonus culture but, unlike Japan after 1990, there is no direct causal link. Ultra-low interest...
Podcast: The Road to Economic Stability ft. Andrew Smithers
by Andrew Smithers | July 27, 2022 | News, Podcasts | 0 Comments
Ideas Lab Series No. 5 Today, we are joined by Andrew Smithers, Author, Economist and Founder of Smithers & Co, to discuss how we can achieve economic stability, based on his book, “The Economics of the Stock Market”. We address the Q Ratio and why it is important...
The Stock Market Model: A New Foundation for Economic and Monetary Policy.
by Andrew Smithers | June 1, 2022 | News, Papers | 0 Comments
Economic policy aims to preserve stability by keeping inflation stable and unemployment at historically low levels. Decisions about how to achieve these aims are inevitably based on some theo-ry, and these theories fall into two main groups: those which are usually...
An economist’s warning for stock market investors
by contributor | April 14, 2022 | News, Reviews | 0 Comments
By Edward Chancellor LONDON, April 14 (Reuters Breakingviews) - Economic theory today is far removed from what happens in the real world. Its canonical models portray the corporate sector as a single representative firm that acts in the interests of its owners. Anyone...
What you thought you knew about interest rates and the market is wrong
by Andrew Smithers | March 30, 2022 | News, Press | 0 Comments
FT - Opinion , 30th March 2022 Conventional macroeconomics is mistaken and its errors have profound and adverse consequences for economic policy. Many economists believe that central banks can stabilise economies by altering real interest rates, as the US Federal...