Quick Reads

Below are a list of quick reads (with links) that either I, or someone I greatly respect have written.

Bonds 101: An overview of how bonds work, including pricing, maturity, yield, duration and convexity.

Yield Curve:  We often hear talk about how the yield curve is either getting steeper or flatter.  What does that mean exactly and why ought you care?

Schools of Economic Thought:  To be able to invest successfully, one must understand the major schools of economic thought and how they impact national and global economies.

U.S. Banking:  The U.S. banking system is a fractional reserve system, an understanding of which is vital for identification of the recent banking crisis origins.

Fiscal and Monetary Policy:  An brief explanation of just what fiscal and monetary policy actual means.

On the Origin and Evolution of the Word Inflation:  This is a piece published by the Federal Reserve Bank of Cleveland in 1997, written by Michael F. Bryan, and is a fantastic primer for understanding the complexities of the term.

The Future of Public Debt: This is a working paper by Stephen Cecchetti, M S Mohanty and Fabrizio Ampolli of the Bank for International Settlements (BIS) released in March 2010.  Their paper examines what current fiscal policy and expected future age-related spending imply for the path of debt/GDP ratios over the next several decades.

Surprise!  Higher Dividends = Higher Earnings Growth: The historical evidence strongly suggests that expected future earnings growth is fastest when current payout ratios are high and slowest when payout ratios are low.   Great paper from 2003 by Robert Arnott and Cliff Asness.