Cantillon Effect, city vs. city edition.https://twitter.com/paulkrugman/status/1152254896097386500 …
-
Wait, you think the Toronto-Buffalo distinction is caused by Toronto being closer to the front of the queue to get monetary stimulus? I’d think this is much more likely to be a real phenomenon.
-
-
Not at all intuitive to me, can you share more of your assessment?
-
Central bank is central hub of a trust network of credit. Toronto financial offices are much closer to that hub than Buffalo mundane industries, which are much closer to the rim.
-
I just did a riff on Cantillon Effects here:https://twitter.com/williamaeden/status/1152787885495640064?s=21 …
-
Ultimately I think it’s much more likely we see *industry* level effects than we would see *geographical* effects of the kind of magnitude you’re describing.
-
For these two cities industry is strongly correlated with geography.
-
Also, trust in the financial industry is based heavily on face-to-face contact.
-
So interestingly enough, unlike before the crisis, finance is no longer the hot, booming place to be. Banks got a lot more boring. Hedge funds are shrinking. Equity research is on its last breath. You’d expect a lot more exuberance if they benefitted so much from the Fed.
End of conversation
New conversation -
-
-
Maybe a small part, but the story is much more interesting. Montréal use to be the center of Canada, when Quebec was threatening to separate most head offices of large companies and business moved to Toronto.
-
Jane Jacob's "A Question of Separatism" puts an interesting monetary perspective on the Toronto/Montreal power dynamic; it's worth the read
End of conversation
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.