Fed Will Maintain Asset Purchases until Employment Recovers
On the menu today: FOMC December meeting, the dollar’s global-reserve status, a theory of IPO pops, and a look at yield-curve control in the mid 20th century.
Interest Rates
The Capital Note: Blue Waving (or Drowning?)
On the menu today: Stocks, ultra-low rates and rising risks, fleeing to Uruguay, vaccine-vulnerable stocks, the value of “green jobs,” ghosts and more.
The Capital Note: Interest Rates at Four Thousand Year Lows (What Could Go Wrong?)
On the menu today: Negative interest rates, “stakeholder capitalism,” Illinois taxes, the EU’s Green New Deal, magic, math, money, and Sir Isaac Newton.
Markets Don’t Have Much Reason to Believe the Federal Reserve
The Fed's new monetary framework is long overdue, but the central bank may prove incapable of hitting its inflation target.
It’s Time to Rein in the Fed
The Federal Reserve is an instrument of Congress, and should act as such.
The Fed: A Change for the Worse?
The Fed is probably right to think that the Phillips curve has currently lost much of its predictive value.
Pandemics, Cashless Economies, and Negative Interest Rates
Pandemic lockdowns add pressure for a ban on cash. That could lead central banks to adopt negative interest rates.
The Money Supply Is Growing But Money’s Still Tight
What’s the point of characterizing the stance of monetary policy as “loose,” “tight,” or “neutral”? Presumably as a guide to what the policy should be.
An Email on Money
The stance of monetary policy is better measured by whether spending growth is accelerating or decelerating.
Less Than Zero?
While interest rates at the moment are not exactly providing savers with a bonanza, negative rates are likely to push savers into riskier investments,