Sometimes you can only shake your head at the confusion surrounding monetary policy. The BOJ has a set a 2% inflation target. While inflation has risen a little bit, it’s still well short of the target. More importantly, market indicators suggest that Japan is unlikely to hit the 2% target going forward. Thus this story […]
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Paul Krugman looks back on the past twenty years of macroeconomic policy and finds that his 1998 paper was more prescient than he or anyone could have imagined. Back then many observers assumed that central bankers--particularly those at the Bank of Japan--need only increase the monetary base to increase the price level. Show More Summary
Jay Powell went to Capitol Hill today for his first congressional testimony as Fed Chair. In addition, he submitted the Federal Reserve's annual Monetary Policy Report to Congress. A lot of ground was covered in his testimony, follow-up questions, and in the report. Show More Summary
Tim Duy: Fed Changing Its Tune: Yesterday I called attention to this line from Federal Reserve Chairman Powell’s testimony: In gauging the appropriate path for monetary policy over the next few years, the FOMC will continue to strike a balance...
Tim Duy: “Avoiding An Overheated Economy,” by Tim Duy: Federal Reserve Chairman Jerome Powell delivered the Fed’s Semiannual Monetary Policy Report Tuesday morning. Powell smoothly and confidently responded to – or deflected – questions as if he were already seasoned...
Excerpts from prepared statement from Fed Chair Jerome Powell: Semiannual Monetary Policy Report to the Congress After easing substantially during 2017, financial conditions in the United States have reversed some of that easing. AtShow More Summary
Tim Duy: Looking For Policy Continuity From Powell, by Tim Duy: Federal Reserve Chairman Jerome Powell will tackle his first Semiannual Monetary Policy Report to the Congress this week. The expectation is that Powell will by and large reiterate the...
Money is flowing to European stocks as jitters struck the US stock markets and The Federal Reserve continues to slowly normalize its monetary policy. The post Divergent: It’s Dalio (And Asness) Versus Everyone Else as Money Flows to Europe Stocks (Fed Tightening As ECB Maintains Accommodating?) was originally published at The Wall Street Examiner. Follow the money!
Before explaining the title of this post, let me point out that I will be interviewed on monetary policy by Charlie Deist for 1 hour tomorrow morning (8-9am Sunday, Pacific time, or 11-12am, EST) Here is the link. Here is Wikipedia: Virtually all sources agree on John D. Rockefeller being the richest American in history. The second […]
Some assorted macro musings from the week A Monetary Correction Ramesh Ponnuru and I have a new article in the National Review where we make the contrarian case that monetary policy was actually tight over the past decade relative to its own inflation target and past trends in the growth of aggregate nominal spending. Show More Summary
Ahead of Fed Chair Powell's first semi-annual monetary policy report to Congress next week (brought forward to 2/27), The Fed has released his prepared remarks warning that "valuations are still elevated across a range of asset classes"...Show More Summary
Monetary policy can be implemented through outright purchases or sales of securities, which permanently changes the size of the Federal Reserve's System Open Market Account (SOMA) portfolio. The post US: $0.100B TIPSPurchase 2018-02-22 NYFed permanent open market operations was originally published at The Wall Street Examiner. Follow the money!
Yes, The Federal Reserve has been taking it easy with monetary policy since November 2008 when their QE program began. The problem is … its is now 2018 and over 10 years after. And The Fed is finding it hard to go home to rate normalization. The...Show More Summary
Tim Duy: Inflation, General Data Flow, Fiscal Stimulus, And Implications For Monetary Policy, by Tim Duy: The data flow remains supportive of the Fed’s forecast of sustained moderate growth. A spike in prices, however, drove core CPI inflation to the...
Mortgage payments might go up, but the market as a whole will likely shrug Since the housing collapse 10 years ago, the U.S Federal Reserve has maintained a loose monetary policy, keeping interest rates low and providing easy accessShow More Summary
(February 16, 2018 01:32 PM, by Bryan Caplan) Question inspired by Scott Sumner's latest post: Why not just let the inflation target rise to 3% to provide wiggle room for conventional monetary policy during future recessions?Update: Read Scott's answer!... (3 COMMENTS)
(February 16, 2018 11:14 AM, by Scott Sumner) I am seeing an increasing number of pundits calling for policymakers to experiment with the economy. The basic idea seems to be to have (demand-side) policy run hot; to see just how much growth potential is out there. This was... (4 COMMENTS)
The role of the monetary policy decisions in influencing markets and economies has increased sharply over the past 30 years. This new eBook presents the state of art of the economics and politics of modern monetary policy governanceShow More Summary
The role of the monetary policy decisions in influencing markets and economies has increased sharply over the past 30 years. A new VoxEU eBook presents the state of art of the economics and politics of modern monetary policy governance...Show More Summary