Topic: Monetary Policy

The Seigniorage Curse

– March 31, 2010

“The Seigniorage Curse appears to hollow out the economy by the following manner: First, the premium charged to holders of dollars becomes a new source of accrued, aggregate revenue. This extra capital flowing into the economy is initially seen as a gl …

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Politicising money lending is not the path to prosperity

– March 29, 2010

“One part of Alastair Darling’s Budget that appears to have received little attention from the media is his plan for a ‘Credit Adjudication Service’. This new body, it appears, will provide an appeals process for small and medium businesses that have b …

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Monetary Policy in a World of Uncertain Productivity Growth

– March 25, 2010

“This paper considers inflation forecasts for 2001 under two different assumptions about productivity growth. One assumption, the optimistic one, is that productivity growth has risen above its long-run historical average and that 2001 will see near pr …

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Inflation

– March 24, 2010

“Inflation rates vary from year to year and from currency to currency. Since 1950, the U.S. dollar inflation rate, as measured by the December-to-December change in the U.S. Consumer Price Index (CPI), has ranged from a low of −0.7 percent (1954) to a …

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“Obama Pays More Than Buffett”

– March 23, 2010

“The bond market is saying that it’s safer to lend to Warren Buffett than Barack Obama. Two-year notes sold by the billionaire’s Berkshire Hathaway Inc. in February yield 3.5 basis points less than Treasuries of similar maturity, according to data comp …

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“Something Besides Money Growth Causes Inflation?”

– March 17, 2010

“Some economic phenomena can result from a variety of causes. A temporary increase in unemployment, for example, might be caused by a sudden, disruptive change in production technology, or in trade patterns, or in labor or tax laws; or it could be caus …

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“Giving the Fed New Powers Ignores History”

– March 17, 2010

“The Fed’s own origins are evidence for this point. It is usually argued that the Fed was created to avoid the banking crises that plagued the United States in the late 19th century. That is true to an extent. What it misses is that those crises were t …

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The Global Debt Crisis

– March 12, 2010

Recent developments have clearly demonstrated that “there is no such thing as a Keynesian free lunch.” The grim story of fiscal crises afflicting major economies is something that should not be taken lightly. It could happen sooner than most people think if the governments of the US and other debt-ridden countries don’t get their fiscal houses in order.

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Getting to the Bottom?

– March 12, 2010

On Wednesday, March 10, a Wall Street Journal article announced that the Financial Crisis Panel will be convened in early April with Alan Greenspan as the center act. According to the article, “The hearing will focus on the explosion of subprime mortga …

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“Monetary Policy and the Free-Market Economy”

– March 10, 2010

“Let me say first that I believe in the benefits conferred by the free market as strongly as anybody in this country: nobody, anywhere, has yet devised a way of organising economic activity which comes close to the free market as a way of efficiently p …

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The Transmission Mechanism of Monetary Policy

– March 10, 2010

“Economists do not agree about how monetary policy affects the economy. Different observers weigh in different ways the various specific channels through which monetary policy works. Views diverge even about the monetary transmission process in individ …

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Monetary Policy Operating Procedures

– March 10, 2010

“This work provides an overview of monetary policy operating procedures in emerging market economies. Most of the discussion reflects the situation in mid-1998. The emphasis is on general principles although in practice country-specific factors conditi …

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