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Monetary Policy

The Grim Future of a Stagnant Economy

Aaron Pacitti | Posted 02.04.2016 | Politics
Aaron Pacitti

A new world order will emerge in the next decade. Whether it is one of inclusive, broad-based growth for all or exclusive, unequal growth for a few will be determined by the policies implemented today. It does not look like the world's dominant policy makers are capable or willing to see the consequences of their misguided actions.

The Only Game in Town

Mohamed A. El-Erian | Posted 01.27.2016 | Business
Mohamed A. El-Erian

The global financial crisis that shook virtually every country, government, and household in the world in 2008-09 gave way to a frustrating "new normal" of low growth, rising inequality, political dysfunction, and, in some cases, social tensions. Now this new normal is getting increasingly exhausted.

How the Fed Tightened

Stephen G. Cecchetti | Posted 01.08.2016 | Business
Stephen G. Cecchetti

Back in August, we explained the mechanics of how the Fed can tighten policy in today's world of abundant bank reserves. Now that the first policy tightening under the new framework is behind us, we can review how the Fed did it, if there were any surprises, and what trials still lie ahead.

A Primer on Central Bank Independence

Stephen G. Cecchetti | Posted 12.03.2015 | Business
Stephen G. Cecchetti

Central bank independence is controversial. It requires the delegation of powerful authority to a group of unelected officials. In a democracy, this anomaly naturally raises questions of legitimacy. It also raises fears of the concentration of power in the hands of a select few.

Another Shot of Steroids From the Central Bank Doctors

Sara Zervos | Posted 10.27.2015 | Business
Sara Zervos

Back in 2008, the global economy was severely injured, and policymakers have been struggling to provide the right medicine to heal it.

Blinder and Zandi: Policy Responses to Great Recession a Resounding Success

Bob Greenstein | Posted 10.16.2015 | Politics
Bob Greenstein

At some point, the economy will fall into another recession or even experience another financial crisis. When either or both occur, policymakers must be ready to use the resources of government to restore a weak economy to health, not stand aside.

Could We Take the Dollar Down Again?

Russell Green | Posted 09.22.2015 | Business
Russell Green

Thirty years ago today the financial leaders of the five leading economies of the time gathered in the Plaza Hotel, concerned about an excessively strong dollar. The coordinated effort to deflate the dollar that resulted from that meeting seems appealing again.

The Fed's Decision And The Developing Countries

Marcelo Giugale | Posted 09.14.2015 | Business
Marcelo Giugale

Will those edgy portfolio investors stampede indiscriminately out of--and wreak havoc among--middle- and low-income countries if the Fed lifts interest rates this September, for the first time in almost a decade?

This Is the Right Time for Higher Interest Rates: Nothing to Be Afraid of

Georges Ugeux | Posted 08.28.2015 | Business
Georges Ugeux

We have had enough of those policies that favor markets and financial institutions to the detriment of the rest of the economy. The Federal Reserve has been waiting too long to correct the current abnormal situation. The IMF is wrong to encourage it to do so.

Unlike Donald Trump's Campaign, His Take On The Federal Reserve Is Sort Of Serious

The Huffington Post | Daniel Marans | Posted 08.05.2015 | Entertainment

Donald Trump, real estate mogul and ersatz Republican presidential candidate, is not one for in-depth policy prescriptions. The entertainer's campaign...

Germany's Leadership Role in Advancing Economic Freedom: Opportunity for All, Favoritism for None

Natasha Srdoc | Posted 06.19.2015 | World
Natasha Srdoc

The topics of strengthening the transatlantic partnership and advancing economic freedom were brought to the forefront, when we gathered in Brussels at a dinner event of the Konrad Adenauer Foundation in December 2014.

Making Sense of Today's Cuban Economy: Promises in the Making

Jose Gabilondo | Posted 06.08.2015 | World
Jose Gabilondo

The exact path remains uncertain, but Cuba's economy is on the move. Bright-eyed capitalists have been thumping their tails since President Obama gave the nod last December to restoring diplomatic relations, but the island's economic model was already in flux.

A Tale of Two Economies: Veritas non Sequitur

Shohini Kundu | Posted 05.13.2015 | Business
Shohini Kundu

Merely 30 years ago, Prime Minister Yasuhiro Nakasone announced his desire to transform Japan into an "unsinkable aircraft carrier." Three decades later, Japan cannot plug the holes of that carrier fast enough to keep it from sinking. Is there a lesson the US can take from Japan?

How the Fed is Making the Rich Richer and Leaving You Behind

Lynn Parramore | Posted 06.16.2015 | Politics
Lynn Parramore

When it comes to what goes on in the marble corridors of the Federal Reserve, Americans tend to be suspicious. For different reasons, both the right and the left have challenged Fed policies aimed at bolstering the economy in the wake of the Great Recession.

Financial Risks Rise Amid Uneven Global Economic Recovery

José Viñals | Posted 06.15.2015 | Business
José Viñals

Additional policy measures -- beyond monetary policies -- are vital to make a durable exit from the global financial crisis and to safeguard financial stability. Crisis legacies need to be addressed. The traction of monetary policies must be increased with complementary reforms and financial excesses need to be contained.

Priorities for Romania: Strengthening the Rule of Law and Advancing Economic Freedom

Natasha Srdoc | Posted 06.12.2015 | World
Natasha Srdoc

In order to increase economic freedom for its citizens and enable them to achieve higher standards of living, Romania needs to continue its efforts to eradicate corruption and establish an independent and efficient judicial system.

Why the Global Economy Continues to Sputter

Kevin Price | Posted 05.19.2015 | Business
Kevin Price

Every part of an economy is aggressively pursuing the necessary capital to continue to grow. When governments crowd out that necessary capital in deficits, debt, and interest on the debt, economies cannot help but struggle where ever such policies exist.

The ECB's Not-So-Sweet 16th

Kermit Schoenholtz | Posted 03.15.2015 | 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.

How Digital Money (Bitcoin) Will Change The World

April Rudin | Posted 03.30.2015 | Business
April Rudin

In mid December, Time Inc. was the latest in a string of companies to announce that it would start accepting bitcoin in payment, following on the heel...

U.S. Monetary Policy

Munir Moon | Posted 02.15.2015 | Politics
Munir Moon

U.S. Monetary Policy - "Print Money" Isn't this how third world countries manage their monetary policy?

This Is What Our Cash Could Look Like If It Didn't Celebrate Dead White Men

The Huffington Post | Kevin Short | Posted 11.05.2014 | Business

Take a look at the redesigns. Remember, these are just hypothetical, and Purrington is in no way affiliated with the U.S. government. But still, we can always dream.

The New Global Imbalance: Too Much Financial Risk-Taking, Not Enough Economic-Risk Taking

José Viñals | Posted 12.08.2014 | Business
José Viñals

I have three key messages for you today: 1. Policymakers are facing a new global imbalance: not enough economic risk-taking in support of growth, but...

Congress Fawned Over Bernanke, But It Mansplains To Janet Yellen

The Huffington Post | Michael McAuliff | Posted 07.18.2014 | Politics

WASHINGTON -- Janet Yellen in February became the 15th chair of the Federal Reserve and the first woman to hold that job, and has so far run Fed polic...

Rhetoric of Colombian Currency

Felipe Ángel | Posted 07.30.2014 | Politics
Felipe Ángel

Susceptibility to foreign shocks would be an adequate phrase to describe the Colombian peso's behavior against the U.S. dollar over the past months.

Brevity and Eloquence -- Lessons From Calvin

Peter W. Wood | Posted 07.23.2014 | College
Peter W. Wood

On May 1, the U.S. Mint released the latest of its presidential commemorative dollar coins, this one celebrating our famously taciturn 30th preside...