QE is Simply Reactionary
byThe Bank of England has recently announced a new round of quantitative easing alongside an interest rates cut, pushing £100 billion into banks, with…
Economics
There is merely a distinction of reason between rules and discretion in central banks’ monetary policy
byAbstract: I briefly review some key articles within the monetary policy literature regarding the debate surrounding rule-based versus discretionary monetary policy and relate them…
The crack-up boom has already begun
by“Negative interest rates are not the fault of central banks” Martin Wolf column for the Financial Times of 12 April, 2016. From ‘Human…
Does UK need looser fiscal stance to cushion Brexit?
by“We are all Keynesians now, so let’s get fiscal” – this is one view according to Ambrose Evans-Pritchard[1] from The Telegraph who believes the…
Real vs. Nominal Interest Rates
byWhat is the real interest rate? It is the nominal rate minus the inflation rate. This is a problematic idea. Let’s drill deeper into…
Benn Steil: Portugal Gaining on Italy in the Banking ‘Doom Loop’
byItalian banks have taken a pounding of late from the ECB, the markets, and the media. They currently hold a whopping €360 billion in…
A crisis of intervention
by“For whosoever hath, to him shall be given, and he shall have more abundance: but whosoever hath not, from him shall be taken away…
Money Supply Arguments Are Flawed
byIt goes without question, among economists of the central planning mindset, that if a central bank can just set the right quantity of dollars[1],…
The FOMC Butterfly that Will Ruin the World
byFrom Bawerk.net Source: http://bawerk.net/2016/07/29/the-fomc-butterfly-that-will-ruin-the-world/ Imagine the financial crisis knocked you out and you did not wake up from the coma that followed until this day. Then,…
The real message from asset inflation
byThe earliest signs are developing of hyperinflation, more correctly described as a collapse of the purchasing power of all the major government currencies. Central…