In an effort to bolster the country's economic health amid the financial crisis, the Federal Reserve embarked on an ambitious monetary policy known as quantitative easing, the effects of which remain somewhat unknown. But years intoShow More Summary
The world’s economy is growing at a tepid pace and the majority of central banks are pursuing expansionary monetary policies. Furthermore, the central banks of the developed world are engaged in unprecedented asset purchases and it appears as though this ‘stimulus’ will continue for the foreseeable future.
An official responsible for implementing Fed monetary policy said that tests of a new tool, designed to help the central bank control short-term interest rates when the time comes to tighten monetary policy, appear to be going well.
The pervasiveness and relevance of asset price booms and busts in modern economies has now been fully acknowledged. So has the case for combining prudential regulation and monetary policy in the complementary pursuit of financial and macroeconomic stability. Show More Summary
Today I’ll link to some other interesting posts: 1. Market monetarism is not haram Left Outside has a fascinating post on Iranian monetary policy and the Islamic prohibition on “interest.” Because I’d like to ban discussion of all the “I-words” (interest rates, income, inflation, etc.), his post made me slightly more sympathetic to the Islamic [...]
In its most recent e-mail poll, finalised on 25th November, the Institute of Economic Affairs (IEA) Shadow Monetary Policy Committee (SMPC) decided by seven votes to two that Bank Rate should be raised on Thursday 5th December. Four SMPC members...
Has the Fed Stabilized the Price Level? Marc P. Giannoni and Hannah Herman Liberty Street Economics, November 27, 2013 The Federal Reserve Reform Act of 1977 established the monetary policy objectives of maximum employment, stable prices, and moderate long-term interest rates. The goal of “stable prices” has long been understood to mean a...Read More
The global crisis changed the face of monetary policy. This column, written by the IMF’s chief economist, reviews the main changes. It draws on contributions to a recent IMF conference on the topic.
BySeth Golden: Capital Ladder Advisory Group is entering this shortened holiday shopping season with a cautious outlook as consumer sentiment continues to reflect the abnormal monetary policy and fickle Washington rhetoric surrounding "Obamacare" and its underwhelming rollout to the public. Show More Summary
Olivier Blanchard, 27 November 2013 The global crisis changed the face of monetary policy. This column, written by the IMF
Is today’s Scottish independence White Paper really an argument for independence? I ask only because the section on currency and monetary policy is essentially arguing for the union. It says:… Continue reading The post A funny argument for independence appeared first on Spectator Blogs.
Is the Fed is about to make a major policy error? The FOMC thinks it can taper its $85bn monthly bond purchases without tightening monetary policy. It hopes to wind down QE stimulus while at the same time offsetting this by holding down long-term interest rates by mere rhetoric, or "forward guidance". That was the [...]
By Angelo Airaghi: During the past few weeks, the Federal Reserve has confirmed that employment must improve before changing current monetary policy. Under these conditions, the US dollar should depreciate further and the EUR/USD could challenge 1.38 over the short term. US: It is not time to give up The optimism of Mr. Show More Summary
While the Washington Republican leaders keep pushing austerity and complain about the Federal Reserve pursuing expansionary monetary policy, it is refreshing to see what Greg Mankiw is saying about the choices Janet Yellen will have to face: In her recent testimony before the Senate Banking Committee, Janet L. Show More Summary
US stocks soared to fresh heights once again this week, notching new landmarks. ||| US stocks soared to fresh heights once again this week, notching new landmarks amid solid economic data, loose monetary policy and, above all, buoyant sentiment. Show More Summary
James Bullard makes some good bullet points in a PowerPoint presentation: Recessions are dated only long after the fact by an unof?cial “NBER dating committee.” The recession during this period was later dated as beginning in December 2007. Incidentally, this is 10 months before Lehman-AIG. However, during 2008 there was a debate as to whether the U.S. was [...]
ROGERS, Ark./ASHEBORO, NC (Reuters) - As the Federal Reserve nears a decision to pare its bond-buying program, top policymakers on Thursday turned to a new monetary policy battlefront: a growing debate over how the Fed should signal the timing of event...
Ahead of the Federal Reserve's monetary policy meeting in October, Wall Street's biggest financial firms told the central bank they were gravitating toward expecting a cut in the Fed's easy-money policies in the spring of 2014.
When it fails, do more of it - Bank of Japan hints at extending ultra-loose monetary policy (FT) PBOC Says No Longer in China’s Interest to Increase Reserves (BBG) Fed casts about for endgame on easy-money policy (Hilsenrath) Big trucks...Show More Summary
Following yesterday's latest Taper Tantrum, it was critical to get a smattering of bad global overnight news to provide the ammunition for the algos that not all in the world is fine and the easy monetary policy will continue indefinitely pushing stocks ever higher at the expense of the global economy. Show More Summary