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Alexander Ineichen Benedicte Gravrand, Opalesque Geneva:
According to Alexander Ineichen, founder of Swiss-based Ineichen Research and Management, and one of the more intelligent defenders of the hedge fund industry around, 'regulomics’ is coming our way.
Regulomics, as he defined it at the recent Terrapinn Hedge Funds World Zurich 2011 conference, is the opposite of Reaganomics – which stands for the Reagan U.S. presidency period in the 80s, which was eventually good for investors. Reaganomics today, rightly or wrongly, stands for leaner government, less expenses, lower taxes, controlled monetary growth and less regulation.
"We can make the case we are now at the opposite of Reaganomics," Ineichen said.
It all started with the way 20th-century English economist John Maynard Keynes’s economic theory was interpreted. Keynesian economics argues that as private sector decisions may lead to inefficient macroeconomic outcomes, there should be active policy responses by the public sector, including monetary policy actions by the central bank and fiscal policy actions by the government to stabilize output over the business cycle. In other words, according to Ineichen, fiscal policy should act counter to business cycles to smooth economic development (borrow more when business cycles ...................... To view our full article Click here
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