BOJ Also Losing Credibility And Its QE War
Haruhiko Kuroda, Governor of the Bank of Japan Photo Credit: Wikimedia Commons/Asian Development Bank Move over Federal Reserve! You are not the only ones losing credibility and in the dog … Read More
Tag: Central Banks
Issues involving the central banks of nations, such as the Federal Reserve in the United States
The Insanity of Negative Interest Rates
Alice entering the domain of the European Central Bank Image Credit: Wikimedia Commons/John Tenniel (1820-1914) (PD-US) Europe has now officially entered into the world of Alice in Wonderland! The European … Read More
Whatever Will We Do About the Fed?
Federal Reserve Building, Washington DC Photo Credit: Flickr.com/wwarby Last September 10, I commented on Senator Richard Shelby’s Financial Regulatory Improvement Bill in A More Accountable Fed. Greg Ip in The … Read More
The Fed is Losing Credibility (Duh!)
S & P 500 Index as of 11/18/15. Image courtesy of StockCharts.com Two posts ago in The Wall Street Casino Is … Read More
The Wall Street Casino Is Open Courtesy of the Fed
Casino slot machine winnings like stock market returns? Photo Credit: Wikimedia Commons/Raul654 By now it is common knowledge: Currently the results of the U.S. stock markets … Read More
Failures of New Keynesian Economics
The wreck of an elegant model! Photo Credit: Flickr.com/Kevin Hutchinson The New Keynesian economics is such an elegant mental construct that it is … Read More
How New Keynesians Explain 1970s Stagflation
Dr. Jimmy Carter’s Stagflation Advice: “I’m Going To Give It To You Straight—I Don’t Have Any Idea What I’m Doing.” … Read More
New Keynesian Adjustments for Inflation
One view of what to do with too much money! Photo Credit: CanStockPhoto.com/dolgachov (c) Can Stock Photo [NOTE: Edited on 11/13/2015 to ensure proper interpretation of the Taylor … Read More
Inside the Mind of a New Keynesian
A New Keynesian’s Brain Image Credit: FreeImages.com [NOTE: Edited on 11/13/2015 to ensure proper interpretation of the Taylor Rule.] There can be no doubt … Read More
Blowing Up the New Keynesian Model
Demolition Explosion! Photo Credit: U.S. Department of Energy I am beginning to see suggestions that it is time to blow up New Keynesian economics to smithereens … Read More
What Does Falling Money Velocity Tell Us?
A falling dollar? Image Credit: Flickr.com/Horia Varlan In our last post, Should We Expect Inflation or Deflation?, we discovered several things about why … Read More
Should We Expect Inflation or Deflation?
Money balloon being popped! Image Credit: CanStockPhoto.com/jgroup Among the most confusing questions of the last decade is whether we are currently in an inflationary economic environment, … Read More
Is It Even Possible for the Fed to Raise Rates?
Federal Reserve Chairman Janet Yellin with Sec. of Treasury Jack Lew PD-USGov Janet Yellen and other members of the FOMC have expressed their desire to raise interest … Read More
Will the U.S. Have Troubles Soon Financing Its Debt?
US Treasury Department Building, Washington, DC Photo Credit: Flickr.com/romanboed A nightmare seems to be stalking the executive and legislative branches of the U.S. government. Is it possible they soon may … Read More
The Solow-Swan Model and Where We Are Economically (3)
In this post we will permit more dynamic economic change in the Solow-Swan model than we did in the previous two posts. This is accomplished by allowing the curves describing … Read More
The Importance of Personal and National Savings
A busted piggy bank! Photo Credit: MorgueFile.com/mconnors This morning I endured a period of cognitive dissonance while reading a May 2015 fortune.com post entitled Are Americans saving too much of … Read More
Economic Damage Created by the Fed
With a turbulent flow of easy money having flooded into the banking system, the Federal Reserve System has inflicted great wounds on our economy. In previous posts we have shown … Read More
Why Have ZIRP and QE Failed?
Wanted for Bank Robbery Photo Credit: Flickr.com/takomabibelot By now after roughly six and a half years of a … Read More
Quantitative Easing and Its Effects
Federal Reserve Building, Washington DC Photo Credit: Flickr.com/wwarby Despite its impact on our economic well-being, few people seem to know much about Quantitative Easing (QE). QE was a … Read More
A More Accountable Fed
Much of what ails this economy was caused by the Federal Reserve. Not all that damages the economy can be laid at the Federal Reserve’s door, but much can be. … Read More
Monetary News from Jackson Hole
Grand Tetons at Jackson Hole, Wyoming Photo Credit: Freeimage.com/Jack Sanders A lot of vital news for the economy came out of two gatherings at Jackson Hole, Wyoming last weekend. … Read More
Monetary Rules
Left to their own devices, the Federal Reserve’s Federal Open Market Committee will more often than not adopt a policy of “easy money”. Rather than adopting a monetary policy that … Read More
The Ideal Monetary Policy
Decade after decade, the Federal Reserve, under its dual statutory mandates to minimize both inflation and unemployment, has favored the attack on unemployment over that of inflation. Depending on the … Read More
Division in the Fed
Evidence of the division between those in the Fed who want tighter money and the Keynesians on the FOMC who want easy money to continue has just appeared. The vice … Read More
OMG!! This Economy Has Been Even Worse Than We Thought!
This morning the Wall Street Journal (access requires subscription), in an editorial entitled “The Six-Year Slough“, revealed that the Bureau of Economic Analysis (BEA) has just released new, revised numbers on … Read More
Current Economic Effects of the Federal Reserve
Having given the institutional composition and powers of the Federal Reserve, and having given our opinion on what it should be doing and why, we will now look at what it … Read More
The Evolution of Modern Economic Theory
In order to understand why the Federal Reserve has chosen its policies of the past three decades, we need to understand the New Keynesians. The response by neoclassical economists to the … Read More
The Federal Reserve and Monetarism
Once the basic institutional facts about the Federal Reserve System have been presented, any discussion of the Fed should begin with a discussion of monetarism. After all, the Fed’s primary … Read More