Lukas Püttmann    About    Research    Blog

Collected links

  1. A discussion on the Fred Blog of “Price growth at the tails” (recommended); do check out the second plot. Here:

    [T]o make the inflation rate meaningful, we must condense this distribution of prices to a measure of, as statisticians would call it, “central tendency.” However, reasonable people can differ on the proper measure because the distribution of price changes has long “tails.”


    Within this basket, the distribution of price changes is usually approximately symmetric, […]. The interesting exception is during the Great Recession period, when commodity prices fell sharply, bringing a strong negative skewness for the first time since the mid-1980s. […] In this period when the economy seemed to be in tremendous flux, the headline, average CPI moved little. However, the skewness—and the tails of the price distribution—changed quite a bit.

  2. Why don’t easy to use, helpful online banking accounts like the one described here exist?

    Suppose you could design the interface for your own investing software. […] What would you put on that first landing page?

    For mine, I’d intentionally not show most of what shows up on DIY brokerage sites today:

    • The shares/price/value of each position I hold
    • Whether those positions are in a gain or a loss
    • The historical performance
    • Market news related to my holdings

    These aren’t just useless for making forward-looking decisions – they’re actively harmful.

  3. New UBS Public Paper by Dominic Rohner (download pdf) on conflicts and institutions.

  4. On giving up your native language by Yiyun Li in the New Yorker: “To Speak is to Blunder”:

    Over the years, my brain has banished Chinese. I dream in English. I talk to myself in English. And memories—not only those about America but also those about China; not only those carried with me but also those archived with the wish to forget—are sorted in English.

  5. 29% of German economists think Italy should exit the eurozone (in German).