Here are some brief thoughts on the monetary system’s role in repeated economic crisis in the last 40 years. I am back from my winter break in sunny Mexico. And I have my thought process nearly done for the Ten Surprises...
This post is about three different topics, Bitcoin and e-Payments, the Minimum Wage, and consumer spending and Walmart. There has been a lot of discussion about all three and I believe I have an innovative way to...
According to Wikipedia, the Taylor rule is a “monetary-policy rule that stipulates how much the central bank should change the nominal interest rate in response to changes in inflation, output, or other economic...
I am doing this outside the paywall because I think it is important that everyone get this idea. In the wake of the financial crisis, bailouts and cheap money have done much to restore American bank balance sheets....
Yesterday, the FOMC decided to reduce the pace of its large scale asset purchase program from $85 billion per month to $75 billion per month. The Fed has long wanted to taper its LSAP program and move to forward guidance to...
President Charles Plosser discusses what he believes is the Federal Reserve’s essential role and proposes how this institution might be improved to better fulfill that role. President Plosser proposes four limits on the...
St. Louis Federal Reserve President James Bullard spoke to Bloomberg News Editor in Chief Matthew Winkler this morning at Bloomberg’s The Year Ahead 2014 Conference in Chicago. What he said there confirmed my comments las...
Over the past few months, the world’s central banks have turned to forward guidance as a central focus of monetary policy. This tool is untested as a central component of monetary policy and has been thrust into...
Martin Wolf has written a column in the FT with which I largely agree, claiming that Germany is a weight on the world. The essence of his argument is that Germany’s export-led growth model is...
Here’s an interesting interview on CNBC. Rick Santelli spoke to recent Nobel Laureate Eugene Fama ahead of the Federal Reserve FOMC meeting to get a sense from the economics professor of what to expect the Fed to do....