Tuesday, September 20, 2011

Equity Prices Correlate with Deficits

h/t Zero Hedge, via The World Complex, which cites Keynesian Economics After All by A. Johansen and I. Simonsen (July 18, 2011).


Joe said...

This makes sense, but the fools at ZH dismiss it with self-righteous indignation.

It's been over three years and they're still waiting for their doomsday moment.

Tom Hickey said...

@ Joe,

Right. They get everything backwards.

Anonymous said...

So does corporate earnings. It's a pretty strong correlation

Shaun Hingston said...

Wouldn't prices in general be correlated with Deficits?

It would be interesting to see if there is a correlation with wages too.

Ron T said...

I don't see this as a strong correlation, sometimes it is strong positive, sometimes strong negative and most of the time zero. What does it tell us? I think not much.