Covid therapies are entering the pipeline at a rate 15 to 80 times faster than any previous epidemic with over 4 new therapies entering the commercial pipeline every single day
The relative share of “short term” solutions – non-vaccines and repurposed drugs – is unusually high. 23 percent of Covid therapies are vaccines, versus at least half for the previous three recent less severe epidemics. Over 60 percent of Covid therapies are repurposed drugs, versus no more than a quarter of those for Ebola, Zika, or H1N1.
the rate at which new vaccines enter the pipeline is essentially the same in February and April!
The increased entry driven by huge payoffs to any successful Covid therapies causes entrants to inefficiently race toward lower-value therapies. If enough small firms begin to race in this way, even the large firms that otherwise would have worked on vaccines will give up. And note that this pattern appears empirically: more severe epidemic leads to more entry by small firms, more work on short-term projects
behavioural economics has been very succesfull in the past decades becuse it ofund fault in the narrow descriptio of the rational man
I understand that ergodicity economics want to relax the narrow ergodicity hypoithesis in economics to show as rational some of those decisions that for behavioural economics where biased and irrational
Probability weighting and Ergodicity Economics
sharing is actually maximizing profit https://www.farmersfable.org/ a cartoon that show how sharing to reduce fluctuation leave both parties better off (on a random walk)
Homo Ergodicus https://glandfried.github.io/post/homoergodicus/
“Multiplicative process offers a concrete physical advantage in favor of cooperative behavior”
Also, Warren Buffet’s 3 rules in light of ergodicity (St. Peterburg’s Paradox explained) https://sinaas.blogspot.com/2020/02/warren-buffetts-rules-nr-12-and-3-in.html
Central banks have a problem, they can’t create inflation. ECB is the worst plagued by that.
So the Chief Economist Lane suggests to add real estate costs to CPI and pump up inflation accordingly, real estate markets are in a bull run Philip Lane, the ECB’s chief economist, has been even more specific. “We at the ECB would agree that there should be more weight on housing,” Read more at: https://www.bloombergquint.com/gadfly/why-your-housing-costs-matter-to-christine-lagarde-and-the-ecb Copyright © BloombergQuint
ECB Chief Lagarde does not mention inflation at all but only green. Decarbonization would be a great way to add some inflation to the system
A carbon tax is more or less an oil shock where the surplus stay in the domestic economic rather than flying to Saudi Arabia. Carbon tax would make great financial sense if the target is higher inflation (of course it will shock the economy, reallocate resources among economic sectors, offer various option on how to redistribute the increased taxes imagine a carbon dividend for example) So a green oil shock would serve many purposes and open up many dimensions of public policy
Green QE story https://ftalphaville.ft.com/2019/12/17/1576593138000/Green-QE-is-about-more-than-buying-climate-friendly-bonds/
gianna difendeva il suo salario dall’inflazione
gianna oggi gestisce il suo rischio con gli index funds