The initial reactions wre modest but directionally 'correct' given the dovish bias to the Fed Minutes - stocks are up, bonds are up (lower in yield), and the dollar is down. But then traders read the warnings that due to excessivelyShow More Summary
It should be crystal clear to everyone that after 10 years of the most accommodative monetary policy in the worlds history the bond market is significantly overpriced. The bond market still has little to no yield (negative yields inShow More Summary
Authored by Louis Rouanet via The Mises Institute, Although today high levels of inequality in the United States remain a pressing concern for a large swath of the population, monetary policy and credit expansion are rarely mentioned as a likely source of rising wealth and income inequality. Show More Summary
(August 16, 2017 02:33 AM, by Scott Sumner) In recent years, the political situation in the US has become highly polarized. But I'm not convinced that this necessarily prevents the two sides from coming together on monetary policy. Consider: 1. The idea of NGDP targeting has considerable (and... (1 COMMENTS)
Tim Duy: Fed Shouldn't View Productivity as an Exogenous Factor: The Federal Reserve has an opportunity to test a hypothesis critical to the health of the U.S. economy: Can persistently loose monetary policy boost the pace of productivity growth? Sadly,...
Fed and Treasury actions this week will help to keep the Liquidity and Monetary Policy Profit indicator (LAMPP) from dropping into red territory this week. The long term LAMPP will remain Green, while the short to intermediate term LAMPPs...Show More Summary
So far, throughout this primer, I’ve claimed that central banks have one overarching task to perform: their job, I said, is to “regulate the overall availability of liquid assets, and through it the general course of spending, prices,...Show More Summary
Authored by Stefan Gleason via Money Metals Exchange, The Federal Reserve can make or break a president. Monetary policy influences all financial markets as well as the cycles in the economy. No president wants to have to run for re-election when the stock market and economy are turning down. Recall that President George H.W. Show More Summary
There's a lot of economic speculation in the African press this morning, with editorials questioning South Africa's monetary policy and Nigeria's strategy to overcome recession. Meanwhile in Kenya, it's all about the impending general election...
Why one of the core precepts of monetary economics is all wet, yet central bankers rely on it even when it keeps failing in practice.
LONDON — Ben Broadbent, the Bank of England's deputy governor for monetary policy, said that the very worst of the post-Brexit vote squeeze on British household finances will pass. Speaking in an interview broadcast by BBC Radio Five...Show More Summary
Good morning! Here's what you need to know on Friday. 1. The Bank of England on Thursday afternoon left monetary policy unchanged for another month, meeting the expectations of forecasters and the markets in the process. That means an unchanged base interest rate of 0.25% and a QE programme capped at a total of £435 billion pounds. Show More Summary
The Reserve Bank of India has presented its 3rd Monetary Policy Review on 2nd August 2017 for the current fiscal year. The Monetary Policy Committee (MPC) of RBI has cut the benchmark Repo Rate by 25 basis points (bps) to 6 percent. This cut in the Repo rate is the lowest since November 2010. Show More Summary
The Bank of England has decided to keep interest rates at a record low 0.25 percent after slowing inflation damped the clamor for an increase. The bank's Monetary Policy Committee … Click to Continue »
LONDON — The Bank of England will deliver a snapshot of the bank's economic forecasts and thinking this Thursday lunchtime. The central bank will release the decisions made during the August meeting of its Monetary Policy Committee on Thursday at 12.00 p.m. Show More Summary
Good morning! Here's what you need to know on Thursday. The Bank of England key Monetary Policy Committee will on Thursday announce its decisions with regards to what to do with interest rates and its quantitative easing programme. Those...Show More Summary
There is a new interview available in David Beckworth’s series of money/macro podcasts. This time it’s with me. I’m also happy to announce a new Mercatus working paper by Jeffrey Hummel, on a topic that’s dear to my heart—the myth of central bank control over interest rates. Before discussing this idea, I need to reassure […]
LONDON — The Bank of England is back from its summer holiday, and deep in the heart of its Threadneedle Street headquarters, the bank's key Monetary Policy Committee will on Wednesday decide what to do with interest rates and its quantitative...Show More Summary
Authored by Lakshman Achuthan via BusinessCycle.com, Under Ms. Yellen’s leadership, the preemption of inflation based on the Phillips curve has become the lodestar of monetary policy. Accordingly, last week’s Fed statement, while allowing...Show More Summary
New column: Will Trump Try to ‘Overrule’ Monetary Policy?: How will the Federal Reserve evolve during Donald Trump’s term as president? Presently, three of the seven positions on the Federal Reserve Board are vacant. These vacancies, along with the possibility...