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The following is an extended version of an article recently published in the Australian Financial Review (firewalled sadly), but I have also included some longer discussion about the role of Money Market Funds in transforming a ‘normal’ financial market crisis in 2008 into an economic one.

One of the big problems in this information age is the use of heuristics, or short cuts (a point made very eloquently by Daniel Kahneman in Thinking Fast and Slow) which can lead us to make decisions on what is very often low information data dressed up as the opposite.

In a break from talking about markets, or Covid, we thought it worth highlighting this discussion on Modern Monetary Theory, otherwise known as MMT and linking to this article at the Mises Institute, where the author points out (rather pithily we thought) that Modern Monetary Theory is neither Modern, nor Monetary, nor a Theory.

The UK press are once again discussing the candidates for the next Governor of the Bank of England, focussing primarily on the political ‘suitability’, but I would put in a plea that we need to see a technocrat rather than an academic or would be politician.