In his final months as European Central Bank president in 2011, a frustrated Jean-Claude Trichet lamented that “In the face of the crisis, we felt abandoned by conventional tools.” Economics models, he argued, could learn from other disciplines like physics, engineering and psychology; they should better capture the simple fact that humans are not rational, particularly in a crisis. His ...

Bloomberg The pound is likely to be driven this week by the state of Brexit negotiations and UK politics, after losing support from bets on central bank policy tightening. Sterling could see any slide exacerbated should it drop below $1.30, according to Morgan Stanley, with the resumption of Brexit talks, fallout from a harassment scandal and industrial data to provide ...

Bloomberg To the naked eye, it was just another up week for stocks. The S&P 500 Index rose 7 points, the eighth time in a row it’s been up. Beneath the surface a barrage of headlines on everything from earnings to the Federal Reserve and taxes were drawing brighter lines between winners and losers. While benchmarks muddled along and broader ...