Associative Economics Bulletin

November 2009

1) The Question of Price

2) Upcoming Events

3) Associate! November 2009 - Beyond The Efficient Markets Hypothesis

4) Finance at The Threshold

5) Links

1) The Question of Price

All economic life centres, stand and falls, and is governed by prices. But how do prices arise? Are they, like the mercury in a thermometer, the reflection of real events, economic fundamentals, and so on, rising and falling when the sun comes out or goes in? Or are they to be achieved by fixing the mercury at some pre-determined setting and forcing events to match it - the equivalent, surely, of making the sun shine? Conceived meteorologically, the latter is clearly preposterous except that we can indeed 'seed' clouds today. In this issue of Associate! we focus on price in the context of financial markets, this being the core issue for understanding the global financial crisis. For many, the reliance on the efficient markets hypothesis is part and parcel of the culture of anonymity that pervades economics on account, mainly, of its unspoken deism.  We touch on the question of price by looking at the ideas of Aristotle, Thomas Aquinas, Rudolf Steiner and Friedrich Hayek, these being important milestones in the history economic thought.

2) Upcoming Events - Finance and Education / The Colours of Money

i) 15 Nov: Finance and Education ll - Financial Literacy
ii) 27-29 Nov: Two events in Spain
iii) Feb 2010 The Colours of Money Seminar

i) 15 Nov: Finance and Education ll - Financial Literacy

Financial literacy is now a 'must' in many schools, with teachers, administrators and governors alike under growing pressure to adhere to finance?s strictures. This seminar will look at school financing from an associative point of view and as a test of literacy. See here for full details.

  • Freely funded education - a modern way of using up excess capital
  • Understanding finance and the role of accounting 
  • Sources of revenue to ownership of premises

Based on working conversations that give rise to intuitions, one of three standalone but connected gatherings designed to take a hard and detailed look at three main areas of a practical nature that depend on spiritual insights. Summarised notes of the first event are available on request for prospective participants. Contact chb [at] cfae.biz

15 November | Financial Literacy  / 13 December | Public Benefit

ii) 27-29 Nov: Two events in Spain

Triodos Foundation's 2nd International Conference on Economics and Organic Farming
Madrid 27 November
Keynote speakers: Christopher Houghton Budd, Director of the Centre for Associative Economics, Canterbury, England / Patrick Holden, President of the Soil Association, Bristol, England.
Dinamis - Social and Environmental Development and Innovation
Girona 28 & 29 November
As a practical follow-up to Colours of Money, The Economics of Farming - A workshop with Christopher Houghton Budd.

iii) Feb 2010 The Colours of Money Seminar

UK: 5-7 February 2010
In the Bristol area, see here for details

 

3) Associate! November 2009 - Beyond The Efficient Markets Hypothesis

Click image to subscribe

Lead: Are Markets Efficient? The Saltwater/Freshwater Divide  Paul Krugman & John Cochrane
A Sign of Our Time: Train Wrecks and Agents
Feature: Pondering the Invisible Hand
Archive
: Zeus meets Apollo Christopher Houghton Budd
Glossary:
E : Efficiency
AE Hero:  True Pricing. Kim Chotzen
Accounting Corner: Random No More Stephen Torr

Click here to subscribe

4) Edge Funding - Finance at the Threshold of the Future

In a book due to be published in June 2010 by Gower Ashgate (see gowerpublishing.com here) in its Transformation and Innovation Series Christopher Houghton Budd sees the global financial crisis as something paradigmatic. He argues that global finance has brought us to the limits of what mechanistic economic explanations can capture. New ideas and above all new instruments that might include a world currency and citizenized banking are needed so that innovation can shift from its dexterous exploitation of inefficiencies consequent upon the discrepant relationship between state and economy, and turn its attention instead to the capitalisation of fresh initiative.

5) Links

Reviews of two recent ae events, True Price - Goetheanum Economics Conference Report and How Rare is Albion?, can be found here

http://www.anthromedia.com/articles/economics/reports/

The following two broadcasts may be of interest to bulletin subscribers. The first deals with the problem of high-frequency trading using co-located computers and algorithms that electronically intercept other traders intentions and based on that information place an arbitrage bet micro-seconds before them. The second provides further commentary on the failure of contemporary economics.

High-frequency trading. The head of the Financial Services Authority, Lord Turner, has questioned the social usefulness of what banks do. But as he and other regulators wrestle with ways of controlling so-called 'casino operations', Michael Robinson lifts the lid on the latest tricks of the trade which some banks are now using to increase profits. http://www.bbc.co.uk/programmes/b00nk55r

The failure of contemporary economics. Many have said that the near collapse of the global financial system exposed the failures of 30 years of economic thinking. Stephanie Flanders, the BBC economics editor, examines the arguments raging within and outside the world of economics and asks what future students should learn from the 'great recession'. http://www.bbc.co.uk/programmes/b00nk0gc

The Friends of Associative Economics Bulletin provides an overview of what is going on around the world in the associative economics movement. The bulletin is viewable as a webpage at www.cfae.biz/fae-bulletin/09Nov/