Category Archives: Economy

The Old Capitalism is dead. Long life to the New Capitalism !

We are all used to all kind of activists in favor of replacing the current system, whatever it is: economical, political… whatever.

However, when a renowned organization like Harvard Business Review (HBR) invites someone to talk about reinventing Capitalism. This may be an early sign that a wave of change may be coming and it may be bigger than we currently think.

No matter what happens next, well, it is not harmful to dream of a better tomorrow 😉

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Capitalism for the Long Term – Harvard Business Review

Capitalism for the Long Term – Harvard Business Review.

Is there an oxymoron right in the title or has the capital market slowly diverted the attention of the capitalistic system from long term value to quarterly earnings?If you are interested in the answers to such questions and what we shall do about it, this HBR article is for you !

Macroeconomy: Quantitative Easing 2 by IMD Professor Arturo Bris

Interestingly enough, most MBA students I have met were primarily interested in Marketing careers. Was this an indication that the other disciplines were boring or at least less interesting?

Well, watching IMD professor Arturo Bris teaching Macro-economy to his students in this 22min video, I cannot really say I found it boring. It would rather be the other way around, I found it funny, engaging and thought provoking.

From here to a 100% free online MBA program that is always on, just a few clicks away, with rich content that you can access whenever you are available and without leaving your home or office, there is just one step.

How big that step is? That is the question…

The era of cheap capital draws to a close – McKinsey Quarterly – Corporate Finance – Capital Management

The era of cheap capital draws to a close – McKinsey Quarterly – Corporate Finance – Capital Management.

Here is another short article that is predicting that as demand for capital is growing to finance the growth of the global economy and as available funds are becoming scarce, this will trigger a new era where capital costs more than before.

The question then becomes: is this going to reshuffle the growth agenda and how it is distributed across the globe? Unfortunately no, as a country like China is not only a big money saver but also attracts a lot sovereign wealth funds, they will continue to enjoy economic growth way above the global average. So the winners of today seem to be the winners of tomorrow for the foreseeable future…

Five myths about US interest rates – McKinsey Quarterly – Economic Studies – Productivity & Performance

Five myths about US interest rates – McKinsey Quarterly – Economic Studies – Productivity & Performance.

If you are interested, I actually have several other posts referring to articles and videos on the same topic. This one has the merit to be short (3 pages) and kill some myths about interest rates in the US and abroad. The mechanics is exactly the same.

Good reading !

Managing for improved corporate performance – McKinsey Quarterly – Strategy – Growth

Managing for improved corporate performance – McKinsey Quarterly – Strategy – Growth.

Here is a fascinating article, which is 2003 old, and is as relevant today as it certainly was by then. Reading it really made we wonder what we learnt between now and then and whether we put into practice some of the key lessons and recommendations shared by the authors.

I read through a lot of business articles, not that many have that level of pertinence and candor in the analysis of a  macroeconomic situation. Once the assessment was done, the prescription was very straight forward. Interestingly enough though, we did not see that many major corporations since then re-balance their priorities between corporate and operating management.

The question has often been asked: “Does humanity take the lessons of the past or do we keep repeating the same mistakes again and again…?”