Burning questions

[Doug Henwood <dhenwood@xxxxxxxxx>]

Questions on two unrelated topics.

1) The IMF has been circulating the assertion that the yield curve is a
good predictor of GDP growth in the G-7 countries. This expands on
earlier work showing the same for the US (references available on
request). The formal assertion is an article by Zuliu Hu in the December
1993 issue of IMF Staff Papers; the argument is translated into a more
popular form in the May 1994 World Economic Outlook. Hu "explains" the
phenomenon with an alchemical intertemporal asset pricing model. Any
other explanations from folks on here?

2) Are there any good out-of-the-mainstream explanations of hyperinflation?

Doug

Doug Henwood [dhenwood@xxxxxxxxx]
Left Business Observer
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