Recent Articles

Improving Economic Policy

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

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

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

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

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.

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 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

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...

Book review: The Economics of the Stock Market

The Society of Professional Economists review. 2022, Oxford University Press, 224 pages,ISBN 9780192847096 Reviewer: Sunil Krishnan, Aviva Investors It has been hard to generate real enthusiasm for general equilibrium analysis in recent years. ...

US – The High Risk of Another Financial Crisis.

A detailed explanation of the economics on which this paper is based is set out in The Economics of The Stock Market (“TEOTSM”) due to be published on 10th March this year by Oxford University Press. Footnotes below give the chapters and figures in TEOTSM which set...

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