Stock markets and gold prices have risen, while the dollar has fallen, as markets anticipate further stimulus measures by the US Federal Reserve.
Compare to Roger Koppl’s Big Players and the Economic Theory of Expectations, which I reviewed here. As Koppl writes:
Big Players are privileged actors who disrupt markets. A Big Player has three defining characteristics. He is big in the sense that his actions influence the market under study. He is insensitive to the discipline of profit and loss. He is arbitrary in the sense that his actions depend on discretion rather than any set of rules. Big Players have power and use it.
Yet again, markets are moving in a herd response to a big player, not the entrepreneurial search to create value for other people. No wonder society is in such a mess. We need fewer big players and more entrepreneurial attention to the billions of people whose needs and wants should direct the allocation of resources.