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Monetary Policy

End The Platnoic Guardian-like Federal Reserve

Bruce Fein | Posted 10.29.2016 | Politics
Bruce Fein

Congress should end the Platonic Guardian-like Federal Reserve, an independent executive agency governed by a seven-member Board of Governors appointed by the President to serve 14-year terms.

The Fed At A Crossroads

Douglas Holtz-Eakin | Posted 09.28.2016 | Business
Douglas Holtz-Eakin

I've long been worried about the future of the Federal Reserve Board, particularly as the pre-eminent monetary policy authority on the globe. That emi...

Suffering From Fed Rate Hike Anxiety? You're Not The Only One

The Conversation US | Posted 12.13.2016 | Business
The Conversation US

Why do we worry so much about what the Fed will do? And is there anything we can learn from this?

Draghi, Other Central Bankers Should Focus Stimulus Efforts on Equities

European Horizons | Posted 09.12.2016 | Politics
European Horizons

By Steven Kelly, contributor at The International Political Economy Hub. European government bond markets saw yields rise last week as the eurozone's...

When Interest Rates Become Negative

Dr. K.C. Ma | Posted 07.07.2016 | Business
Dr. K.C. Ma

Denmark homeowners are now receiving checks each month because their mortgages have negative interest rates. A negative interest rate means the lender...

Bank Capital and Monetary Policy

Stephen G. Cecchetti | Posted 07.06.2016 | Business
Stephen G. Cecchetti

Capital--the excess of assets over liabilities--determines solvency, so policymakers are used to thinking of it as a tool for keeping banks and the ba...

When Experts Get Stunned: Fed Tightening Cycle May Stimulate Inflation

Timothy J. Barnett | Posted 06.10.2016 | Politics
Timothy J. Barnett

The Federal Reserve's core guiding belief is that economic stimulus boosts economic growth, thus increasing employment opportunities, payrolls, tax revenues, corporate profits, retirement security and Wall Street wealth.

Easy Money and the Fed's War on the Middle Class

Timothy J. Barnett | Posted 06.01.2016 | Politics
Timothy J. Barnett

As a high level organization that manipulates monetary apparatuses, the Fed merely feigns concern about inflation as a theoretical risk.

Hey, Larry Summers

Eve Ellis | Posted 05.23.2016 | Business
Eve Ellis

Summers says that the current focus on monetary policy is not enough to combat the current downward world economic trend. Yes, as I said, I think he's right. But his own solutions fall short.

Ted Cruz Just Reminded The Republican Establishment Why They Hate Him

The Huffington Post | Ben Walsh | Posted 04.18.2016 | Business

Is Sen. Ted Cruz the palatable presidential alternative to Donald Trump? Sure, the Texan senator’s not exactly the Republican Party establishment’...

How Low Can They Go?

Stephen G. Cecchetti | Posted 04.04.2016 | Business
Stephen G. Cecchetti

Not long ago, nearly everyone thought that nominal interest rates could not go below zero. Now, we have negative policy rates in the euro area and Japan, while in Sweden and Switzerland, the lowest controlled rate is below -1%.

Political Risk is Preventing European Economic Recovery

European Horizons | Posted 03.10.2016 | Politics
European Horizons

As the European economy continues to stall and as there is still a lack of active, coordinated fiscal policy in Europe and the Eurozone, political turmoil will continue at the polls and in government bond markets.

Why Are Governments Struggling to Prop the World's Economy?

Marcelo Giugale | Posted 03.03.2016 | Business
Marcelo Giugale

"Out of ammo", "helicopter money", "monetary impotence", "infrastructure push", "savings glut". These are the kind of strange handles economists are u...

Growth and its Side Effects

St. Gallen Symposium | Posted 02.19.2016 | Politics
St. Gallen Symposium

For developing countries, the high growth policies come with greater challenges. One of the side effects of growth is its high income inequality.

A Quick Central Bank Primer for Volatile Financial Markets

Mohamed A. El-Erian | Posted 02.15.2016 | Business
Mohamed A. El-Erian

With so much financial market volatility this year, we should look at the extent to which central banks have been the primary policymaker in many countries; and points to what they can and cannot do going forward.

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 01.08.2017 | 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 12.03.2016 | 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 10.26.2016 | 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 10.15.2016 | 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 09.22.2016 | 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 09.14.2016 | 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 08.28.2016 | 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...