Most people have probably never even heard of “contract theory,” but that’s the specialty that has won Finland’s Oliver Hart and Bengt Holmström this year’s Nobel prize in economics. And as the theory’s name implies, their work helps us understand the contractual relationships between, for example, workers and firms, shareholders and management, businesses and suppliers, and health insurance companies and their customers.
Minutes of the Federal Reserve’s September policy meeting could illuminate the degree of pressure Chair Janet Yellen faced from officials eager to raise interest rates, insights that could help guide expectations on the likelihood of a hike by year end.
Slumping crude prices and a dour start to Wall Street’s corporate earnings season pulled down U.S. and European equities on Tuesday, while the dollar hit an eight-month high on increasing bets U.S. interest rates will rise in December.
Next trading day’s important events
S&P 500: 2,133.10
NASDAQ : 5,231.56