iOS app Android app

Inflation

The ECB's Not-So-Sweet 16th

Kermit Schoenholtz | Posted 01.13.2015 | Business
Kermit Schoenholtz

If the ECB is willing to use all its available tools without limit, there is little reason to doubt that it can hit its inflation target of close to 2%. However, making that policy commitment credible remains a great challenge because of the controversy and dissent about acquiring risky government debt.

Thinking About Money

Tom F. Driver | Posted 12.29.2014 | Money
Tom F. Driver

There was a danger that eveerybody might want to take their money out of banks at the same time, in which case the banks would collapse. So Roosevelt (FDR) closed them temporarily to let panic cool down.

Speak Up and Give Back if You Want the Economy to Improve

Anthony W. Orlando | Posted 12.26.2014 | Politics
Anthony W. Orlando

No one is arguing for complete equality of income. Not even close. We celebrate the success of the One Percent, and rightly so. All we ask, especially in this time of giving, is for the compassion, the humility, the shared experience that existed only a few decades ago.

CNBC's Jim Cramer: Make Money, Don't Moralize

Timothy J. Barnett | Posted 12.23.2014 | Politics
Timothy J. Barnett

Once a nation turns its back on a resolute determination to cultivate moral deservedness, political and financial superintendency passes to those who gain power illegitimately--a fact described eloquently by President Theodore Roosevelt.

7 Questions About the Recent Oil Price Slump

Olivier Blanchard | Posted 12.22.2014 | Business
Olivier Blanchard

Oil prices have plunged recently, affecting everyone: producers, exporters, governments, and consumers.  Overall, we see this as a shot in the arm for the global economy. There is, however, much more to this complex and evolving story.

Economic Policy Myths of 2014: Dead and Enduring

Dean Baker | Posted 12.15.2014 | Business
Dean Baker

Two myths that caused great confusion over the last several years are now headed to the trash bin of history. Unfortunately, many of our great national myths have survived 2014.

Fed Shouldn't Be Raising Interest Rates Any Time Soon

Mark Weisbrot | Posted 12.08.2014 | Politics
Mark Weisbrot

With inflation still running at 1.7 percent and downside risks such as the slowing world economy, there's no excuse for the Fed to be throwing people out of work by raising interest rates. Let's hope that public pressure and an improved debate over Fed policy can keep this country moving toward full employment.

Republicans Just Don't Get It, Part II

Harlan Green | Posted 12.01.2014 | Business
Harlan Green

Instead of finding ways to increase our productive capacity and boost household incomes, which are the real wealth creators, Republicans continue to benefit the few at the top of the food chain, most of whom are only interested in enriching themselves.

Jobless Rate Falls to 5.8 Percent -- Why Be So Unhappy?

Harlan Green | Posted 01.09.2015 | Politics
Harlan Green

Job creation in October marked the ninth straight month the economy has added 200,000 jobs or more, a feat last accomplished in 1994. The U.S. has created some 2.3 million jobs this year and is on track for the biggest gain in almost a decade.

Inflation-Deflation See-Saw

Terry Savage | Posted 01.04.2015 | Money
Terry Savage

There's no rhythm to the process, only the unexpected swings and lurches. Once you understand this analogy, you'll be less anxious and less prone to jump to one side or the other in a reaction to the latest news.

Which Hazard Is Better Contained: Ebola or Extreme Economic Inequality?

Timothy J. Barnett | Posted 12.27.2014 | Politics
Timothy J. Barnett

Design changes in Ebola management protocols make it highly probable that the Ebola hazard in America will be successfully contained. In contrast, the hazard of wealth-concentration policies implemented by central banks is not under containment. This problem threatens the very fabric of democratic enterprise.

Where Is That Inflation We've Been Waiting For?

Luis Ubiñas | Posted 12.17.2014 | Politics
Luis Ubiñas

Fear of resurgent inflation has been a defining element of U.S. economic policy over the last five years, driving federal spending reductions, personal income tax increases, and, just this month, the end of the Federal Reserve's Quantitative Easing program. But that broad-based inflation has not materialized and we are left asking why?

Recovery of the Rich, By the Rich, For the Rich -- Recession for Everyone Else

Anthony W. Orlando | Posted 12.17.2014 | Politics
Anthony W. Orlando

Officially, the recession ended five years ago. But there's something the financial newscasters don't tell you: Unless you're rich, those numbers don't apply to you.

Do Minimum Wage Increases Benefit the Middle Class?

Timothy J. Barnett | Posted 12.13.2014 | Business
Timothy J. Barnett

This is not to argue against minimum wage increases as much as to argue that this remedy must not be substituted for reforms at deeper levels.

Draghi's Desperation

Milton Ezrati | Posted 11.30.2014 | World
Milton Ezrati

The European Central Bank (ECB) faces a desperate situation. Remarkably low inflation is stealing its ability to ease the euro zone's fiscal-financial strains and, consequently, its ability to buy time for the zone's governments to implement desperately needed budgetary and economic reforms.

The Federal Reserve's Artful Compassion for Households in 'Sobering' Condition

Timothy J. Barnett | Posted 11.26.2014 | Business
Timothy J. Barnett

Glaringly absent in the Fed's policy platform is a commitment to a fair architecture for capitalism that equitably distributes the fruits of enterprise by providing incentives for ethically pricing each person's contributions to the sustainable public good.

Is The Federal Reserve Printing A Free Lunch?

Terry Burnham, Ph.D. | Posted 11.17.2014 | Business
Terry Burnham, Ph.D.

I continue to believe that this grand Keynesian experiment will end in tears. Furthermore, when it ends badly, future generations will not be able to believe our stupidity.

Argentina: Down the Tubes, Again

Steve H. Hanke | Posted 11.12.2014 | World
Steve H. Hanke

Property's worst enemy is theft: theft makes property insecure. And unless property is secure, it can't be accumulated and it is wasted. The increasing incidence of heists on grain, Argentina's most valuable export, indicates that property rights are becoming more insecure and that the economy only has one way to go: down the tubes.

The Inflation Fighters Want to Increase the Debt Burden on Our Children

Dean Baker | Posted 11.08.2014 | Business
Dean Baker

Are you worried about the government running deficits in the hundreds of billions of dollars and a debt in the trillions? If so, then you should be really angry at people calling for the Federal Reserve Board to raise interest rates.

Los Angeles Proposes A Higher Minimum Wage

Manuel Pastor | Posted 11.02.2014 | Los Angeles
Manuel Pastor

Why the muted effects on employment? Interestingly, what used to be a staple of traditional economics -- that minimum wage hikes trigger job cutbacks -- has found increasingly less evidence in the field.

The Real Financial Monster: Low Interest Rates

Terry Burnham, Ph.D. | Posted 11.02.2014 | Business
Terry Burnham, Ph.D.

The conventional wisdom: low interest rates are good for both economic growth and the stock market. Unfortunately for the conventional, the "wisdom" of low-rates-stimulate-growth omits three features.

Arguments Against Raising Minimum Wage Don't Hold Up

Peter Van Buren | Posted 10.27.2014 | Politics
Peter Van Buren

One in four U.S. employees are low-wage workers. That is 20 percent higher than in the United Kingdom, and the highest percentage among industrialized nations. So how'd that all anti-union stuff work out?

Yellen + Jackson Hole = More Growth

Harlan Green | Posted 10.25.2014 | Business
Harlan Green

The evidence is mounting, if not already there, that some higher taxation -- including a streamlining of the various tax codes that eliminates the perks -- is needed to spur continued growth. But when will the politicians finally wake up to that fact?

Yellen Warns That The Job Market Is Still Not Great

Reuters | Posted 08.22.2014 | Business

By Howard Schneider JACKSON HOLE, Wyo., Aug 22 (Reuters) - U.S. labor markets remain hampered by the effects of the Great Recession and the Federal...

Where Is the Inflation?

Harlan Green | Posted 10.22.2014 | Business
Harlan Green

It's a pity more of those "inflationistas," who cry wolf at the slightest hint of rising prices, haven't visited the FDR Memorial where some of his most telling words are engraved, such as: "The test of our progress is not whether we add more to the abundance of those who have much, it is whether we provide enough for those who have too little."