Thomas Palley: The Fed’s Misguided Approach to Tightening
The Fed touted its “creativity” in bailing out banks during the crisis. That “creativity” is absent in how it is planning to exit its extraordinary policies.
Read more...Category Archives: Federal Reserve
What Else Can Central Banks Do?
This column presents the latest Geneva Report on the World Economy, in which the authors argue that central banks can do more to stimulate economies and restore full employment when nominal interest rates are near zero. Quantitative easing and negative interest rates have had beneficial effects so far and can be used more aggressively, and the lower bound constraint can be mitigated by modestly raising inflation targets.
Read more...Revealed: ECB Secretly Hands Cash to Select Corporations
Is the ECB’s latest bond-buying program creating corporate winners and losers?
Read more...Banks Pushing Back Against Negative Interest Rates With Threat to Store Cash
Banks are looking into holding more cash as central banks threaten to drive interest rates even further into negative terrain.
Read more...Wolf Richter: The “Housing Crisis” in San Francisco Strangles Demand
San Francisco housing bubble buckles under its own lopsidedness.
Read more...How the Fed Promoted “Financial Dominance” and Shadow Banking by Promoting Repo
Yves here. This is a very important post, and sadly I’m not providing it with the introduction and commentary it warrants because I am scrambling to get organized to get out of town. By Daniela Gabor is associate professor in economics at the University of the West of England, Bristol. Originally published at the Institute […]
Read more...Big Wall Street Firms Make Lame Excuse for Volcker Rule Non-Compliance, Ask for Additional Five Year Extension
Big Wall Street firms like Goldman and Morgan Stanley offer “dog ate my homework” excuses for failure to comply with the Volcker Rule.
Read more...Economists Mystified that Negative Interest Rates Aren’t Leading Consumers to Run Out and Spend
It been remarkable to witness the casual way in which central banks have plunged into negative interest rate terrain, based on questionable models. Now that this experiment isn’t working out so well, the response comes troubling close to, “Well, they work in theory, so we just need to do more or wait longer to see […]
Read more...Dumb Money Watch: ZIRP-Starved Insurers Beefing Up in Lending as Banks Exit the Pool
Insurers are going long risk at one of the worst possible junctures.
Read more...Do “Unconventional” Monetary Policies Work?
A skeptical look at unconventional monetary policies: quantitative easing, ZIRP, and negative interest rates.
Read more...The Global “New Normal” Is Not New– But It Is Still a Real Concern
Why the “new normal” is a sign that capitalism is running out of options.
Read more...Global Money: A Work in Progress
Bagehot outlined some of the requirements for global money. Are we closer to a solution?
Read more...Star Wars: The Fed Awakens
A short take on the Fed’s recent antics.
Read more...Wolf Richter: What Makes This Jobs Report So Truly Ugly?
Last week’s job report was not only disconcerting in and of itself, but it also bodes ill for labor market prospects.
Read more...Helicopter Money: The Illusion of a Free Lunch
Does helicopter money come with a hidden price tag?
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