Why Traders And Economists Don't Get Each Other On Monetary Policy

Economists and traders have inherently different market philosphies -- the former believing prices are essentially right and the latter that mispricings are rampant enough that the smart guy stands to profit. So it's no surprise, writes Greg Ip at The Economist, that the two are talking past each other about the recent bond market sell off. From The Economist: These different world views help explain why traders have always been suspicious of quantitative easing (QE) and economists dismissive of...