Monetary Policy

Monday, March 7th, 2011
"Lately, that seems to be the message coming from current and past Fed officials regarding the housing and credit boom in the early-to-mid 2000s. First Ben Bernanke, then Vincent Reinhart, and now Janet Yellen have come out saying it was excess savings by foreigners and failings in the U.S.
Monday, March 7th, 2011
"The danger for Bernanke in politicizing the Fed, some economists and academics say, is that it makes it easier for Congress and the White House to pressure the Fed to make decisions that are politically popular but not good for the economy.
Thursday, March 3rd, 2011
"Federal Reserve Bank of Kansas City President Thomas Hoenig said the central bank is “monetizing debt” with its purchases of U.S. Treasuries, a program that he says may spur inflation.
Thursday, March 3rd, 2011
"The greenback, in other words, is not just America's currency. It's the world's. But as astonishing as that is, what may be even more astonishing is this: The dollar's reign is coming to an end.
Wednesday, March 2nd, 2011
"“I just see a continuation of rising prices for the average family,” at a time where the Fed is constructing policies to ward off what it sees as the threat of deflation, Sen. Bob Menendez, a New Jersey Democrat told Bernanke.
Wednesday, March 2nd, 2011
"In the midst of the current financial crisis the economics profession has seen a monumental resurrection of Keynesian ideas. The debate, which Keynes started back in the 1930s, is being picked up again, not where it left off, but in exactly the same place it started.
Monday, February 28th, 2011
"Friedman, as with the other papers that day, found inflation to be a massive problem. In fact, next to the threat of a third world war, inflation is what he finds to be the most serious threat to the preservation of a free society.
Monday, February 28th, 2011
"As recently as last month, governments of emerging economies from South Africa to Brazil warned that competitive devaluations might be needed to keep their strengthening currencies from stifling economic growth.
Friday, February 25th, 2011
"The world's currencies are gyrating, but the strains are being felt beyond financial capitals and corporate boardrooms.
Friday, February 25th, 2011
"Unfortunately for defenders of Fed policy, today’s paper is filled with stories of rising inflation. In Singapore, consumer price inflation is running at 5.5%. In Vietnam, consumer price inflation is running at over 12%. There are food riots in India.
Thursday, February 24th, 2011
"One of the more durable achievements of the previous Government was the establishment of the Monetary Policy Committee (MPC), whose work – for around a decade – was widely praised. As the recession took hold, the MPC does seem to have been seriously off the pace.
Wednesday, February 23rd, 2011
"Rather helpfully, on the Bank’s website there is an explanation of how Quantitative Easing was supposed to improve the economy.
Wednesday, February 23rd, 2011
"Economist Judy Shelton, author of Money Meltdown and The Coming Soviet Crash, recently wrote A Guide to Sound Money as part of her work co-directing the Sound Money Project for the Atlas Economic Research Foundation (www.atlasnetwork.org).
Wednesday, February 23rd, 2011
"China and India blame the U.S. Federal Reserve for their difficulties in maintaining stable prices.
Wednesday, February 23rd, 2011
"About seventy percent of American households own their own homes, and for many their homes represent the majority of their net worth.
Monday, February 21st, 2011
"There are two lessons here. One short-term, the other long-term. First, policymakers and investors need to shake off the belief that the current inflation spike is temporary.
Friday, February 18th, 2011
"Goods inflation has outstripped services inflation for long stretches since mid-2007, something that hadn't happened since the 1970s. For most of the last 30 years, goods prices had been held down, in part, by cheap imports from low-wage countries like China.
Thursday, February 17th, 2011
"In asking whether the recent financial crisis could have been avoided, the crucial fact is that crises of various flavors have occurred for centuries in countries around the world.
Thursday, February 17th, 2011
"Federal Reserve monetary policy over the past 15 years or so has produced bubble after bubble,and each bubble (or each group of contemporaneous bubbles) is bigger in aggregate and more damaging than the one that preceded it.
Wednesday, February 16th, 2011
"One of the most important concepts in economic theory is the quantity of money. However, when going from theory to practical application, things get messy. In the real world, it's not obvious how to count up the amount of "money" in the economy at any given time.

Pages