Traders track the output gap—the difference between actual economic output and potential output.
Excellent for tracking balance of payments crises and sovereign risk analysis frameworks. global macro theory and practice pdf
While efficient market hypothesis dominates academic finance, global macro practitioners live by George Soros’s theory of . It argues that market prices do not just reflect fundamentals; they change fundamentals. For example, a falling home price causes defaults, which forces bank sales, which lowers prices further. A PDF guide on global macro practice without a chapter on reflexivity is incomplete. Traders track the output gap—the difference between actual