Recommended reads for this weekend
Collectivists, individualists and indifferents. What the different types of consumers mean for the market for sustainable and healthy products ( LSE Business Review ). How financial products can attract infrastructure capital from institutional investors. By mitigating key risks of investing in major infrastructure projects in emerging markets, banks, governments, and international financial institutions can close the funding gap in developing Asia ( McKinsey ). The new Fama puzzle. The ‘Fama puzzle’ is the finding that ex post depreciation and interest differentials are negatively correlated, contrary to what theory suggests. This column re-examines the puzzle for eight advanced country exchange rates against the US dollar, over the period up to February 2016. The rejection of the joint hypothesis of uncovered interest parity and rational expectations still occurs, but with much less frequency. In contrast to earlier findings, the Fama regression coefficient is positive