Can gradual interest rate tightening prevent shocks?
byFed policy makers are of the view that if there is the need to tighten the interest rate stance the tightening should be gradual…
Economics
Jeffrey P. Snider : China’s (de)Dollar Bonds
byThe Chinese government has sold its first dollar bond issue in thirteen years. Given that fact alone, the idea is causing more than a…
Low Interest Rates Subsidize Wealthy Households
byBy Hal Snarr When the economy begins to sink into recession, politicians, mainstream economists, policy wonks, and the Federal Reserve begin beating the economic stimulus…
Necessity is the Mother of Invention – Retirees Desperate Reach for Yield
byBen Bernanke’s creativity inspired a generation of economists and central bankers. QE, ZIRP and NIRP established a new class of economics that is mathematically…
The productivity myth
byEvery now and then, there’s a rash of commentary on national productivity. And for the British, productivity is all part of the Brexit angst,…
What should be the criteria for model selection?
byIn order to make the data “talk,” economists utilize a range of statistical methods that vary from highly complex models to a simple display…
European Bonds – warning knell or cause for celebration?
byGreek bonds have been the best performer in the Eurozone year to date IMF austerity is still in place but there are hopes they…
Fed confused about what drives inflation
byOn October 4 2017, the former governor of the Federal Reserve Daniel Tarullo in a speech at the Brookings think-tank in Washington said Fed…
The upcoming increase in interest rates
byLast week, both Janet Yellen of the Fed and Mark Carney of the Bank of England prepared financial markets for interest rate increases. The…
The worst of government poor planning: An economic argument against rent controls
by“In many cases rent control appears to be the most efficient technique presently known to destroy a city—except for bombing.”[1] Jeremy Corbyn’s announcement…