Month: June 2018

Economic Predictions with Big Data: The Illusion of Sparsity

Domenico Giannone, Michele Lenza, and Giorgio Primiceri The availability of large data sets, combined with advances in the fields of statistics, machine learning, and econometrics, have generated interest in forecasting models that include many possible predictive variables. Are economic data sufficiently informative to warrant selecting a handful of the most useful predictors from this larger…
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What the New ESMA Leverage Rules Mean for European Traders

One of the biggest changes to forex trading in the Eurozone just took place. What is that change? Simply put, the ESMA (European Securities & Markets Authority) passed a new regulation that would limit the leverage any European forex broker would be allowed to offer their clients. The new regulation, if implemented, would bring the…
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