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Monetary Policy

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 01.08.2016 | 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 05.11.2016 | 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.