Benn Steil: How We Know Eurozone Monetary Policy is Working Again
byIn 2013, I showed that the ECB’s monetary transmission mechanism had broken down in the crisis-hit periphery countries. ECB rate cuts were not being passed on…
Economics
Here we go again…
byAs world stock markets continued to climb to cyclical – if not all – time highs, it became almost the norm for industry talking…
Does the rising price of industrial metals herald the beginning of the next commodity super-cycle?
bySuper-cycle theory In a 2012 paper for the United Nations/DESA – Super-cycles of commodity prices since the mid-nineteenth century – Bilge Erten and José Antonio Ocampo…
Further thoughts on Gibson’s paradox
by“The paradox is one of the most completely established empirical facts in the whole field of quantitative economics.” – John Maynard Keynes “The Gibson…
Money multiplier is really about credit out of “thin air”
byAccording to traditional economics textbooks, the current monetary system amplifies the initial monetary injections of money. The popular story goes as follows: if the…
Deafblind
by“Most economists, it seems, believe strongly in their own superior intelligence and take themselves far too seriously. In his open letter of 22 July…
See no evil, speak no evil…
byThe Jackson Hole speeches of Janet Yellen and Mario Draghi last week were notable for the omission of any comment about the burning issues…
Taken To The Cleaners
byThe following, written exclusively for The Cobden Centre, is by Dean Buckner (Life Insurance and Pensions Department, Bank of England) Introduction Should regulators…
Dreams of Gerontius
byDemographics, productivity & the great central bank fallacy of interest rate determination Summary As we go to press, the Mighty Oz’s and Grand Panjandrums…
Austrian Monetary Theory vs. Federal Reserve Inflation Targeting
byOne of the leading policy guideposts for central banks and many monetary policy proponents nowadays is the idea of “inflation targeting.” Several major central…