Markets

The Hottest Central Banker In The World Isn’t Sold On NGDP Targeting

[credit provider=”Bloomberg”] Incoming Bank of England Governor Mark Carney is delivering a three-hour testimony before Britain’s Treasury Committee this morning.Carney’s name has been associated with nominal GDP targeting – arguably the hottest idea in monetary policy right now, but something that has yet to be taken up by a major […]
The Hottest Central Banker In The World Isn’t Sold On NGDP Targeting
Markets

A Sea-Changing Moment In Monetary Policy Could Arrive In The UK Sooner Than Anyone Expected

[credit provider=”World Economic Forum” url=”http://www.flickr.com/photos/worldeconomicforum/5393267553/”] The big news in central banking this week came from the Fed, which announced the adoption of an “Evans Rule,” a concept named after Chicago Fed President Charlie Evans, who proposed back in 2011 that the Fed link easy money with explicit economic targets.In other […]
A Sea-Changing Moment In Monetary Policy Could Arrive In The UK Sooner Than Anyone Expected
Markets

Meet The Blogger Who May Have Just Saved The American Economy

[credit provider=”YouTube” url=”http://www.youtube.com/watch?v=VP4IiKxNj8I”] The Fed’s announcement of QE Unlimited was a clear departure from past strategy: Rather than seeing asset purchases as an amount of money injected into the financial system, the Fed is now aggressively using the power of future guidance.It’s a step in the direction of Nominal GDP […]
Meet The Blogger Who May Have Just Saved The American Economy
Markets

Goldman Presents: The Case For A Fed ‘Double Punch’

[credit provider=”AP Images”] The Fed is set to meet next week, and thanks to Friday’s disappointing jobs report, economists have raised their odds of seeing QEIII adopted.That would mean that in an effort to boost the economy, the Fed would buy more purchases… perhaps Mortgage Backed Securities with the purpose […]
Goldman Presents: The Case For A Fed ‘Double Punch’
Markets

When Michael Woodford Presented His Groundbreaking Paper At Jackson, He Got Two Very Different Types Of Reactions

[credit provider=”Michael Woodford, Columbia” url=”http://econ.columbia.edu/michael-woodford-institute-new-economic-thinking”] Last week at Jackson Hole, economist Michael Woodford (the world’s foremost expert on monetary policy), presented a groundbreaking paper on what the Fed could do to stimulate the economy with interest rates at 0%. Rather than asset purchases (as Bernanke has favoured), Woodford suggested that […]
When Michael Woodford Presented His Groundbreaking Paper At Jackson, He Got Two Very Different Types Of Reactions
Markets

Get Ready For Today’s FOMC Minutes

[credit provider=”Dgrilla” url=”http://www.shutterstock.com/cat.mhtml?lang=en&search_source=search_form&version=llv1&anyorall=all&safesearch=1&searchterm=federal+reserve&search_group=&orient=&search_cat=&searchtermx=&photographer_name=&people_gender=&people_age=&people_ethnicity=&people_number=&commercial_ok=&colour=&show_color_wheel=1#id=41104303&src=fc42b82f01b4ad94514edf774632a433-1-5″] Minutes from the November meeting of the Federal Open Market Committee will be published today, and investors will be scouring them for hints at drastic measures ahead from the Federal Reserve.The committee held the federal funds rate target stable at 0.25% and did not announce significant new […]
Get Ready For Today’s FOMC Minutes
Markets

GOLDMAN: The Fed Is About To Screw Up

[credit provider=”i am the sam via Flickr” url=”http://www.flickr.com/photos/newspress/5040167201/”] You know that Goldman Sachs is a leading proponent of NGDP targeting by the Fed, and in fact it was Goldman’s call for NGDP targeting that explains why this idea has moved from academic fringes (and blogs) to something that’s been getting […]
GOLDMAN: The Fed Is About To Screw Up
Markets

Is Bernanke Hinting At NGDP Targeting?

Federal Reserve Chairman Ben Bernanke gave a speech to soldiers and their families at Fort Bliss, TX, today explaining the Fed’s role and what it’s doing to stimulate the economy.
Is Bernanke Hinting At NGDP Targeting?
Markets

Sorry America, Ben Bernanke Still Can Not Save Us

The debate over NGDP targeting is getting even hotter, and it looks as though the its advocates are getting even more strident in their belief that all the Fed needs to do is announce a specific goal for NGDP, and the economy would heal, thanks to an increase in inflation […]
Sorry America, Ben Bernanke Still Can Not Save Us
Markets

AGAIN, Goldman Calls For The Fed To Use “Unconventional Unconventional” Policies

[credit provider=”commons.wikimedia.org” url=”http://commons.wikimedia.org/wiki/File:Olympic_Development_(Mens)_100m_Dash.jpg”] For the past couple of weeks, Goldman’s economics analysts have lead to a big popularization in the idea that the Fed ought to target a specific Nominal GDP and make sure it happens.NGDP targeting is an idea that’s been kicking around economic circles for a while, but […]
AGAIN, Goldman Calls For The Fed To Use “Unconventional Unconventional” Policies