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"I haven’t learned any new physics in these conversations, but I have learned a great deal about science communication. My clients almost exclusively get their information from the popular science media. Often, they get something utterly wrong in the process. Once I hear their reading of an article about, say, space-time foam or black hole firewalls, I can see where their misunderstanding stems from. But they come up with interpretations that never would have crossed my mind when writing an article.
But the most important lesson I’ve learned is that journalists are so successful at making physics seem not so complicated that many readers come away with the impression that they can easily do it themselves. How can we blame them for not knowing what it takes if we never tell them?"
Option-adjusted spread (OAS) is the yield spread which has to be added to a benchmark yield curve to discount a security's payments to match its market price, using a dynamic pricing model that accounts for embedded options. OAS is hence model-dependent. This concept can be applied to a mortgage-backed security (MBS), or another bond with embedded options, or any other interest rate derivative or option.
Epoch Times: This would benefit gold holders disproportionately.
Mr. Brodsky: There’s no question. And so if you’re going to be cynical about this you would say they’re not going to do that until the right people own gold. You would want China to own enough gold so they wouldn’t become hostile. You would want all central banks that are going to be included in this to own the gold. And obviously individuals or other portfolios that own gold would benefit greatly.
How is hyperinflation defined?
In Cagan's 1956 paper on hyperinflation he used inflation of 50% per month as the cutoff for his study. In a footnote he says, "The definition is purely arbitrary but serves the purposes of this study satisfactorily.". Since then many academic researches have taken this as the official definition of hyperinflation and ignored any cases of less than 50% per month as "not true hyperinflation". Hyperinflation researcher Steve Hanke wrote a letter to the editor to complain when a company used 40% per year and a standards board used 100% in 3 years. In the real world today people call 100% inflation in 3 years hyperinflation. I don't think Cagan even meant to exclude 10% or 40% per month as "not true hyperinflation", I think it was just his way of reducing the cases to investigate down to a manageable number. When millions of people call what they are living through "hyperinflation", I think it is wrong for academics to ignore them because one guy used a higher cutoff in a paper long ago.
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