The consequences of proposed exit strategies deserve serious attention. Schnabl’s work is a step in the right direction.
Despite Japan's perfect Keynesian-textbook policy making, the economy has not revived. As a legacy of the policies, the Japanese government debt has grown to a dimension rarely reached outside of times of war.
Nearly 10 years after QE1 began, economists and pundits continue to ask whether the Fed’s expansionary monetary policy was effective. Instead, they should consider whether the Fed actually engaged in expansionary monetary policy.
George Selgin speaks at the American Institute for Economic Research, July 28, 2018.
There are two reasons monetary policy cooperation might backfire.
The Federal Reserve’s (Fed) and European Central Bank’s (ECB) policy responses to the recent financial disasters offer two tales of unintended consequences.