Talking about ‘Sticky Prices’ and Monetary Policy
byThe phenomena of ‘Sticky Prices’ (known also as ‘nominal rigidity’, ‘wage-stickiness’ and ‘price-stickiness’) is important in Keynesian thought and macroeconomic thought more broadly. Prices…
Economics
The Eventual Impact of Rising Bond Yields. Further Cracks Appearing in the ‘Global Consensus’ of Bank Supervision.
byCentral Banking Global Bond Market Yields are Rising The ECB’s recently announced 6 month extension of its QE programme reminds us that the speed…
Benn Steil: Is the Emerging Market Currency Plunge Really About Trade?
byEmerging market (EM) assets have taken a beating since Donald Trump’s surprise election victory on November 8. EM bond prices are down 4.4 percent,…
Unemployment and inflation: is there any relation?
byA fall in the US unemployment rate to 4.6% in November from 4.9% in the month before and 5% in November last year has…
Benn Steil: China’s Bond Market Can’t Handle a Global RMB
byThe Chinese RMB’s ascension into the IMF’s SDR currency basket in October has been widely seen as an important first step on its path to becoming…
Mario’s Squeezy-B
byHaving already touched upon the UK’s shaky fiscal position, all that really needs to be added, now that the Chancellor has actually delivered his…
Why inflation is not about general increases in prices
byThere is almost complete unanimity among economists and various commentators that inflation is about general increases in the prices of goods and services….
There Are Two Types of Credit — One of Them Leads to Booms and Busts
byIn the slump of a cycle, businesses that were thriving begin to experience difficulties or go under. They do so not because of firm-specific entrepreneurial…
About that Economic Inequality
byI address this essay to two groups. One group is those among the liberty movement, who believe that there’s nothing wrong with inequality. These…
The European Banking Can Nears the End of the Road
by“The key thing to know about Lehman Brothers is that it did not cause the financial crisis, it revealed the financial crisis”[1] Central Banking…