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Monetary Policy

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...

Without Coordination, U.S. Fed Policy Can Hurt Global Growth

Raghuram Rajan | Posted 06.28.2014 | World
Raghuram Rajan

As the world struggles to recover from the global economic crisis, the unconventional monetary policies that many advanced countries adopted in its wake seem to have gained widespread acceptance. In those economies, however, where debt overhangs, policy is uncertain, or the need for structural reform constrains domestic demand, there is a legitimate question as to whether these policies' domestic benefits have offset their damaging spillovers to other economies. The disregard for spillovers could put the global economy on a dangerous path of unconventional monetary tit for tat. To ensure stable and sustainable economic growth, world leaders must re-examine the international rules of the monetary game, with advanced and emerging economies alike adopting more mutually beneficial monetary policies.

For Africa, Good Policies Bring Good Prospects

Antoinette Sayeh | Posted 06.24.2014 | Business
Antoinette Sayeh

The issue of rising fiscal imbalances is worth dwelling on. A number of economic observers have asked the question: Are countries heading back to the bad old days of rapid debt accumulation that may need to be forgiven down the line? Are these fears well grounded?

The Best Monetary Policy Is Strict Financial Regulation

Anthony W. Orlando | Posted 06.18.2014 | Politics
Anthony W. Orlando

In recent years, private-sector forecasters have been surprisingly accurate at forecasting changes in the unemployment rate, but they have been equally inaccurate when forecasting changes in the federal funds rate, the baseline interest rate controlled by the Fed.

Will Bitcoins Become the People's Federal Reserve?

Fred Lundgren | Posted 05.23.2014 | Money
Fred Lundgren

Henry Ford said, "It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there wou...

Anatomy of a Market Lie: CNBC Misreads the Fed and Helps Out Short Sellers

Terry Connelly | Posted 05.20.2014 | Business
Terry Connelly

Despite Yellen's evident caution and discomfort in expressing any specific quantitative definition of "considerable period," the stock and bond markets chose to take Yellen ultra-literally about the six months and turned suddenly and violently downward.

The Fed Moves the Goal Line

Michael Farr | Posted 05.20.2014 | Business
Michael Farr

I believe that the Fed has overreached in its monetary policy not just in response to the latest crisis, but pretty consistently over the 15-20 years. In an effort to lessen the effects of (inevitable) economic downturns, the Fed (and other central banks) has caused extreme financial distortions and dislocations.

Don't Blame Western Monetary Policy For Emerging Market Woes

The WorldPost | Nathan Gardels | Posted 02.22.2014 | World

The following is an excerpt on the role of the G-20 from a speech by Britain’s Chancellor of the Exchequer, George Osborne, given at the British Cha...

A Different Chair

Joao Gomes | Posted 04.08.2014 | Business
Joao Gomes

Three aspects in particular strike me as liable to become important in the coming years. First, while much of Bernanke's personal interest and expertise was on financial markets and monetary policy, Yellen's own focus has always been more on understanding labor markets frictions and outcomes.

U.S. Monetary Policy and Its Effects on Latin America

Alejandro Werner | Posted 03.18.2014 | Business
Alejandro Werner

The volatility since May 2013 tells us that the process of normalization of U.S. monetary policy will be complicated and volatile. So it is smart to prepare for bumps.

Turkey: How To Boost Growth Without Increasing Imbalances

Isabel Rial | Posted 03.17.2014 | Business
Isabel Rial

In our recent annual review of Turkey's economy, regression analysis suggests that, barring a significant change in policies or the economic environment, the level of growth consistent with a stable current account is in the 2¾ to 3½ percent range. In other words, growth above this speed limit would lead to a wider current account deficit.