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Negative Nominal Interest Rates?
A number of economists and economics writers have considered the possibility of allowing the Federal Reserve to drop interest rates below zero in order to make holding onto money costlier and...
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Even After All The QE, The Money Supply Is Still Shrunken
Here are the broadest measures of the US money supply, M3 and M4 as estimated by the Center for Fiscal Stability: With the total money supply still at an absolute level lower than its 2008 peak, it is...
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The Fed Shrugs
Since talk of the taper started, interest rates have been gradually rising. When Bernanke talked about the possibility of tapering QE in mid 2014 so long as growth and unemployment remain on track,...
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Minsky, the Lucas Critique, & the Great Moderation
Last week, I noted that the post-2008 world had provided an astonishingly good test for Milton Friedman’s notion that stabilising M2 growth was an effective antidote for economic depressions. Bernanke...
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Can The Fed Taper?
Back in June, I correctly noted that it was severely unlikely that the Federal Reserve would taper its asset buying programs in September. I based this projection on the macroeconomic indicators on...
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Correction or Crisis?
After almost seven years of relative calm and stability, a stock market crash is finally upon us. This is a very predictable crash stemming from a very widely known cause. Hundreds of analysts...
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Trump’s Election Win Shows That The Bank Bailouts And Quantitative Easing...
To all who argued the financial world would’ve collapsed without the bailouts: The political world is collapsing now because of the bailouts — Emanuel Derman (@EmanuelDerman) June 25, 2016 The bigger...
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