Marshall Auerback

Director of Institutional Partnerships
Institute for New Economic Thinking

Auerback has over 20 years of experience in the investment management business. He served as a director and global portfolio strategist for the Canada-based fund management group Pinetree Capital. He also was head of economic research for Madison Street Partners, a Denver-based investment management group, and he worked as an economic consultant to PIMCO, the world’s largest bond fund management group.  In addition, Auerback is a Research Associate at the Levy Economics Institute of Bard College and a Research Fellow for the Economists for Peace and Security. (http://www.epsusa.org)

Previously, Auerback managed the Prudent Global Fixed Income Fund for David W. Tice & Associates and assisted with the management of the Prudent Bear Fund. He also worked as an international economics strategist for Veneroso Associates, which provided macroeconomic strategy to a number of leading institutional investors. Prior to that, Auerback ran an emerging markets fund for Tiedemann Investment Group in New York. He began his finance career as an investment manager at GT Management, focusing on the markets of Japan, Australia, and the Pacific Rim, while based in Hong Kong and then Tokyo.

Auerback graduated magna cum laude from Queen’s University in Canada and received a post-graduate masters degree from Oxford University.  .

My Content

A showdown has taken place within Italy’s governing coalition. Events are still unfolding, but the center-left Democratic leadership has given an explicit thumbs-down to the current government, and former Prime Minister Enrico Letta has resigned.   Matteo Renzi, the leader of Italy’s Democrats, says that he hopes to have his new government ready this weekend after nearly two days of talks with all of Italy’s political parties, and expects to form a coalition largely based on the same left-right alliance that previously supported Letta.
Bubbles have become a major focus of discussion in today's financial markets. But very few people actually define what they mean when describing this financial phenomenon.   In a recent Harvard Business Review blog post, Markus Brunnermeier, an economist at Princeton University and a member of the Institute for New Economic Thinking’s Advisory Board, had a go at it. Brunnermeier defines the leading characteristics of bubbles thusly: "Bubbles are typically associated with dramatic asset price increases followed by a collapse. Bubbles arise if the price exceeds the asset’s fundamental value."
The global financial crisis of 2008 created the worst recession in the developed world since the Great Depression. Governments had to respond decisively on a large scale to contain the destructive impact of a massive debt deflation. Still, large financial institutions such as American International Group, Bear Stearns, Lehman Brothers, Countrywide Financial, Washington Mutual, Wachovia, Northern Rock, and Landsbanki collapsed. Thousands of small-to-medium financial institutions failed or needed to be rescued. Millions of households lost their retirement savings, jobs, houses, and communities. And numerous non-financial businesses closed.
Persistent high unemployment has produced a crisis for virtually all Americans. Many have suggested that this may be “the new normal” and that there is little we can do about it. But they’re wrong. We can resolve the crisis in unemployment by adopting a federal job guarantee (JG) for all citizens via a government Job Guarantee Program.
By Marshall Auerback, Stephanie Kelton and L. Randall Wray Should the federal government bailout Detroit? That’s the question everyone is debating. We think the discussion should be expanded well beyond this narrow question. Detroit is the canary in the coal mine, but it’s symptomatic of a bigger problem, which is the lack of jobs and decent demand in the economy.

My Video Content

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By Marshall Auerback

The concept of innovation as a “good thing” is seldom questioned. After all, there is no doubt that innovation and invention create the foundations for much of our growth and economic prosperity. 

But what about the distributional benefits?  Who wins? Who loses?  Among women and African Americans, what are the patterns and determinants in terms of patents, commercialization, and overall economic success relative to other groups in American society? Are there social and professional networks that are more salient for commercial activity than others?  If so, do these vary by gender and race?

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By Marshall Auerback

The United States economy is stuck in a good news/bad news cycle. 

As the recent downwardly revised first quarter Gross Domestic Product figures indicate, the U.S. economy still is operating well below capacity. This was in part caused by U.S. consumers continuing to feel the pinch of fiscal restrictions, as well as adverse weather conditions, which created inventory overhangs that still need to be worked off. 

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By Marshall Auerback

The philosopher Karl Popper argued that we cannot know empirical truths with absolute certainty.

According to Popper, even scientific laws can’t be verified beyond a shadow of a doubt. They can only be falsified by testing. One failed test is enough to falsify, but no amount of conforming instances are sufficient to verify. Scientific laws are hypothetical in character and their truth remains subject to testing. Ideologies that claim to be in possession of the ultimate truth are making a false claim; therefore, they can be imposed on society only by force. 

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By Marshall Auerback
 
The days of “the great moderation” are over, if they ever existed in the first place.  
 
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By Marshall Auerback

The benefits of innovation are seldom questioned.  Virtually every single growth initiative formulated by governments around the world to deal with today's challenging economic conditions invariably circles back to the need to promote innovation as a panacea.  

But what if innovation is not an unalloyed good for society?  What if it simply adds to our current dystopian dysfunction?