Magazine May 20, 2013, Issue

How the Fed Can Unwind

(Roman Genn)
And its critics can relax

As the Federal Reserve has continued to buy bonds to aid the economic recovery, critics of its actions, and even some supporters, have grown increasingly concerned about what comes after all of this “quantitative easing”: How will the Fed “unwind” its balance sheet — that is, sell off the bonds it has purchased — without harming the economy?

The short answer: Don’t worry about it. The Fed can reverse its actions without wreaking economic damage, especially if it does it at the same time as it announces that it intends to keep nominal income growing at a stable rate.

Nobody disputes that

In This Issue

Articles

Politics & Policy

American Dawa

Deep-blue, multi-culti Boston is the latest target of jihadist terror. The spree began on April 15, when terrorists remotely detonated two improvised explosive devices near the finish line of the ...
Politics & Policy

George W. Bush Day

Dallas, Texas – They’re streaming onto the grounds of Southern Methodist University, at 7:30 in the morning. They’re dressed in their Sunday best, too — even though it’s Thursday. They, we, ...

Features

Politics & Policy

The Rubio Amnesty

When Mitt Romney lost last November, the Republican establishment decided that his moderately hawkish stance on immigration had been a major cause of his defeat. Never mind that his share ...
Politics & Policy

iPencil

Everybody knows the first words spoken on a telephone call — Alexander Graham Bell’s simple demand “Mr. Watson, come here. I want to see you.” April marked the 40th anniversary ...
Politics & Policy

Faith and Family

Following heavy losses in the same-sex-marriage fight, traditionalists are anxious. “Conservatives have been routed, both in court and increasingly in the court of public opinion,” writes Rod Dreher in an ...

Books, Arts & Manners

Sections

Politics & Policy

Letters

Explaining the Gulf According to Kevin A. Hassett in his April 22 column, a “gulf has emerged” between the academic achievements of boys and girls — women now earn 57 percent ...
Politics & Policy

The Week

‐ New line of attack on Ted Cruz: He doesn’t act like the other senators. New slogan for Cruz campaign: See above. ‐ A Washington Post/ABC poll taken the week before ...
Athwart

Let Us Rage Together

The Sanctioned F-Bomb finally appeared in the wake of the Boston bombings. Speaking at a televised baseball game, Red Sox player Big Papi said, “This is our [bleepin’] city.” The ...
Politics & Policy

Poetry

Koan Practice On one hand, what Is it not? But on one hand it Isn’t everything. The beer I do not drink With the friend I have never met In the café that doesn’t ...
Happy Warrior

Jihad Abhors a Vacuum

Post-9/11, we in the omniscient pundit class were all Afghan experts. Post-Boston, we are all Chechen experts. Strictly between us, I can count what I know about Chechens on one leg. ...

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