Monetary Policy Remains Sufficiently Tight
Slowly but persistently, inflation is falling. The Bureau of Labor Statistics announced the Personal Consumption Expenditures Price Index (PCEPI) increased 0.2 percent in July. Over the past year, prices are up 3.3 percent overall and 4.2 percent excluding food and energy. The backwards-looking figures, however, don’t give us the best picture of where the economy […]
Breaking Up is Hard to Do: US Monetary Policy and the World
The worldwide recession induced by COVID-19 pandemic has caused enormous misery across the world. It was the worst recession the world has seen since World War 2 and caused a 3.4% drop in global GDP just in 2020. A surface level analysis implies that the COVID recession was caused only because of the drastic measures, […]
Monetary policy and wages – Econlib
A new NY Fed paper from Martin Almuzara, Richard Audoly, and Davide Melcangi has some interesting findings regarding nominal wages. This is their conclusion: We estimate the latent persistent component of aggregate nominal wage growth by combining worker–level data with time series filtering and smoothing methods. This measure, which we label CoWI, is purged […]
In Search of a Monetary Standard: A Review of Robert Hetzel’s The Federal Reserve: A New History
Few books about the history of the Federal Reserve contain the number of insights found in Robert Hetzel’s The Federal Reserve: A New History. Hetzel does not merely recount historical events related to America’s central bank, as so many other books have done. Instead, he draws on his considerable knowledge of economic theory and intellectual […]
Central banks monetary policy decision are diverging
Dollar, yuan, yen and euro notes. Ullstein Bild Dtl. | Ullstein Bild | Getty Images From hawkish pauses to rate hikes and dovish tones, the world’s biggest central banks last week struck very different tones on monetary policy. The European Central Bank on Thursday hiked rates and surprised markets with a worsening inflation outlook, which […]
Is China better at monetary policy than America?
When china’s leaders reappointed Yi Gang as governor of the country’s central bank in March, it was a pleasant surprise. With an economics phd from America, where he also taught, Mr Yi is the kind of reform-minded, well-travelled technocrat that is disappearing from China’s policymaking establishment. Listen to this story.Enjoy more audio and podcasts on […]
Cuba: A Monetary Phenomenon – Econlib
To write about statistics and Cuba is, inevitably, to speak of oxymoronic terms. Whenever someone tries to approach the Cuban case from the lens of years prior to 1959, or even after, the stats are either obscure, non-transparent, or nonexistent. That is not to say that the work in this field does not exist. On […]
Interview: Neocons Need War Because Monetary System Collapsing
Watch the video above or click here for the latest interview with USAWatchdog. Commentary from Greg Hunter: Legendary financial and geopolitical cycle analyst Martin Armstrong said at the end of last year the U.S. is being set up for a “nightmare fall.” Train derailments and political problems are spinning out of control, but the biggest […]
The Tragedy of the Monetary Commons
Earlier this month, Argentina and Brazil announced that they would begin working to implement a common currency. The news shocked many economists, including Oliver Blanchard, former chief economist of the International Monetary Fund. Blanchard responded by tweeting: “This Is Insane.” While neither country has a good track record in monetary affairs, the potential problems created […]
One of these monetary expansions is not like the other…
In March 2009, with the British economy in freefall, the Bank of England under Chairman Mervyn King embarked on a program of Quantitative Easing (QE) where the Bank would ‘print’ money and use it to buy assets from financial institutions whose balance sheets had been ravaged by the collapse of mortgage-backed securities. The purchases were […]
