Topic: Monetary Policy

“The High Costs of Very Low Interest Rates”

– August 11, 2010

“The prevailing view among economists, policy makers and Federal Reserve Board governors is that a zero or near-zero short-term interest rate stimulates the economy—the lower the rate, the better. It is time to re-examine this conventional wisdom. In f …

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“Gold Is Steady Ahead of Fed”

– August 9, 2010

“Spot gold was mostly flat early Monday in a quiet start to the week, as market participants await the Federal Reserve meeting Tuesday. Analysts said they expected the Fed’s comments this week to indirectly boost gold.” Read more. “Gold Is Steady Ahead …

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“Dollar Bears Will Soon Have Had Their Day”

– August 5, 2010

“Dollar bears should soon be hiding their faces. A combination of soft U.S. economic data, over cautious Fed officials and sliding Treasury yields have all raised expectations of more quantitative easing. As a result, the dollar has been sold heavily o …

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“Dollar Near Eight-Month Low”

– August 4, 2010

“The dollar traded near an eight-month low against the yen on speculation the Federal Reserve will take more credit easing measures to revive its flagging economic recovery, diminishing the appeal of U.S. assets. The greenback was close to its lowest l …

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“Less than Zero: The Case for a Falling Price Level in a Growing Economy”

– August 4, 2010

“Not long ago, many economists were convinced that monetary policy should aim at achieving ‘full employment’. Those who looked upon monetary expansion as a way to eradicate almost all unemployment failed to appreciate that persistent unemployment is a …

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“Federal Reserve Information and the Behavior of Interest Rates”

– August 4, 2010

“This paper tests for the existence of asymmetric information between the Federal Reserve and the public by examining Federal Reserve and commercial inflation forecasts. It demonstrates that the Federal Reserve has considerable information about inflat …

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The Money Debate

– August 4, 2010

In the battle of ideologies, the libertarian always faces certain disadvantages. The foundation is, as the name implies, liberty. Yet there is no strict use towards which “liberty” can be put. It is a somewhat amorphous idea, and context changes its me …

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“Money in the 1920s and 1930s”

– August 4, 2010

“One of the most enduring and troublesome mysteries in economics is money: how it is created, what sorts of institutions initiate the process, what kinds of mystique and priestcraft central bankers use in managing monetary systems, and what rules, laws …

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“Interest Rates and the Federal Reserve”

– August 4, 2010

“On June 30, 2004, the Federal Reserve Open Market Committee announced it was raising the targeted federal funds interest rate from 1 to 1.25 percent, to begin to prevent a possible future price inflation. The next day the European Central Bank (ECB) d …

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“Bernanke Says Rising Wages Will Lift Spending”

– August 3, 2010

“Investors and the public have been closely watching signals about the economy and the Fed’s possible policy moves to address problems. While the United States has “a considerable way to go” for a full recovery, “rising demand from households and busin …

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Bullard’s Bipoloar Fed Strategy

– August 2, 2010

“Forcing banks to take undue risk for the sake of the economy would result in banks recklessly engaging in the behavior that precipitated the financial crisis in the first place! Banks could still decide not to lend to small businesses and consumers, p …

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A Conversation with Milton Friedman – Liberty Fund

– July 30, 2010

“Milton Friedman discusses his economic ideas with Gary S. Becker. Recipient of the 1976 Nobel Memorial Prize in Economics, Milton Friedman has long been recognized as one of our most important economic thinkers, and a leader of the Chicago school of m …

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