quantitative easing

Two warnings about quantitative easing, the taper, and what comes next

Summary: Quantitative easing is the easy cheap stimulus (unlike the politically difficult but effective fiscal action. Like heroin, it provides a lift with no ill effects. Slowly economists begin to realize that the cost of QE is not paid up front, but during withdrawal. Faced with the necessity and cost of tapering, last week the Fed wiffed. …

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Do you look at our economy and see a world of wonders? If not, look here for a clearer picture…

Summary: Among the many goals for the FM website, two are perhaps the most important.  First, we are too often lost in the now. Buried in the daily multimedia tide we lose sight of our track — the trend of events, which we see only by frequently looking backward along the path. I believe the …

Do you look at our economy and see a world of wonders? If not, look here for a clearer picture… Read More »

Different answers to your questions about the momentous Fed decision to delay tapering

Summary: We have now had a 24 hour avalanche of analysis about the Fed’s decision not to taper. Most technically accurate, as economic news often is. But myopic, as news coverage usually is. Today’s post gives a wider perspective on this decision, putting it in the content of the Great Recession and the following slow …

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Government economic stimulus is powerful medicine. Just as heroin was once used as a powerful medicine.

Summary: Today America passed an important fork in the road, an easy exit from the massive monetary stimulus running since the crash. If the economy continues its slow growth (well below the 2% stall speed) today might have been the last opportunity for an easy exit. Today also demonstrated the madness that infects us, as …

Government economic stimulus is powerful medicine. Just as heroin was once used as a powerful medicine. Read More »

A look at the state of the US economy. Join me in confusion!

Summary: The current economic situation of the US is fascinating. Repeated disappointments in the past, great optimism about the future, confusion about today, all occurring amidst one of the greatest monetary experiments in history. The stakes are high. Growth will force perilous withdrawal of the current massive monetary stimulus; a slowdown will force more stimulus …

A look at the state of the US economy. Join me in confusion! Read More »

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