Skip to main content

FT's 125th Anniversary

The Financial Times is celebrating its 125th Anniversary today. The story of the FT can be viewed in the short video below and you can read about it here.

How important is the press for financial markets? Paul Tetlock suggests that the financial press captures and informs investor sentiment. Joel Peress, on the other hand, argues that the press provides information to investors, particularly in the case of small public companies.

Does the press play a role in financial bubbles?  In a recent paper with Gareth Campbell and Clive Walker, I find that the press did not contribute to the hyping of railway stocks during the famous railway mania. Similarly, a study looking at the role of the press during the dotcom bubble found that the it did not contribute to the asset price reversal.   


Popular posts from this blog

The Failure of Herstatt Bank

As an undergraduate, I was taught about the failure of Herstatt Bank in 1974 and Herstatt risk. This bank was only the 35th largest bank in Germany at the time so why would anyone be interested in studying its failure? Herstatt failed because of its involvement in risky foreign exchange business. When it closed its doors on 26 June 1974, counterparty banks (mainly in New York) had not received dollars due to them because of time-zone differences - this is known as settlement risk. The cross-jurisdictional implications of its failure resulted in the Bank for International Settlements setting up the Basel Committee on Banking Supervision and Herstatt's failure was a key reason for the establishment of real-time gross settlements systems, which ensures that payments between two banks are executed in real time. The Bank of England's Ben Norman has an interesting post on Herstatt over at the Bank's new blog ( Bank Underground ). As well as giving an excellent overview of

Boom and Bust: A Global History of Financial Bubbles

Boom and Bust: A Global History of Financial Bubbles, co-authored with my colleague Will Quinn , is forthcoming in August. It is published by Cambridge University Press and is available for pre-order at Amazon , Barnes and Noble , Waterstones and Cambridge University Press . 

The Great Depression

Marginal Revolution University has a great video on the Great Depression.