taper

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

By / 19 Comments / 7 October 2017

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

By / 13 Comments / 23 October 2013

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.

By / 17 Comments / 17 November 2014

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 »

Look at the economy to see why today’s jobs report is so important!

By / Leave a Comment / 17 November 2014

Summary: A quick look at the US economy, showing why today’s jobs report is so important. It will be a major factor determining if the Fed starts the taper this month. A wrong decision could have unpleasant consequences for not just the US economy, but for the world. Making a right decision seems difficult, with …

Look at the economy to see why today’s jobs report is so important! Read More »

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