taper

Richard Koo gives a “Post-QE forecast: sunny, cloudy, or stormy?”

Summary: Prosperity, perhaps even survival, in the 21st century might require learning which experts we should listen to. In economics its a short list, if we limit it to people who have understood large aspects of the great recession and the aftermath.  Richard Koo certainly deserves to make that short list. Here he tells us …

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What happens if the economy hits some rocks? Will the Fed stop the taper?

Summary: The first phase of the great monetary experiment was guaranteed pleasure. Whatever the results, monetary stimulus feels great. Then comes the difficult process of withdrawing the stimulus. “Tapering”, as its called by economists (and, coincidentally, by heroin addicts). How much damage will be cause? How much pain? Today we have advice about what to …

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A Fed Governor speaks honestly to us about the costs and risks of our monetary policy

Summary: Fed officials see as tools their ability to manage our confidence and expectations. This means a constant policy of exaggeration and distortion in their speeches, as truth and plain-speaking are secondary considerations. But there are exceptions. Perhaps the most famous is Bernanke’s 2002 “the U.S. government has a technology called a printing press” speech. …

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How to predict the outcome of this great monetary experiment, and how we got into this box

Summary: Today we discuss the nature of the great monetary experiment now under weigh, with five years of zero interest rates and repeated doses of quantitative easing. What does it mean to say this is an “experiment”? If we cannot reliably predict the outcome, at least let’s understand how we got into this predicament. . …

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Dr Hunt explains the great monetary experiment. It will be historic, no matter what the result.

Summary: On the FM website we have followed the evolution of the great monetary experiment. After four years we have mostly questions. What have been the beneficial effects, and how large? What have been the ill effects today and in the future? Does quantitative easing act like an addictive drug? Today’s post by Lacy Hunt …

Dr Hunt explains the great monetary experiment. It will be historic, no matter what the result. Read More »