Monthly Archives: December 2015

The Fed’s in a Bind

One can understand the Fed’s frustration over the failure of its interest rate policy, and its desire to escape the zero bound. However, since the FOMC has all but said it will increase rates at its December meeting, events have turned against this course of action. The other major central banks are in easing mode,… Read more »

One can understand the Fed’s frustration over the failure of its interest rate policy, and its desire to escape the zero bound. However, since the FOMC has all but said it will increase rates at its December meeting, events have turned against this course of action. The other major central banks are in easing mode,… Read more »

Advice to the Prime Minister

Your country faces a stagnating economy. Let us assume your Prime Minister (or President if that is who holds the executive power) seeks advice from two imaginary economists. PM: You two economists have different views on what our economic policy should be. What is your advice? FIRST ECONOMIST (Austrian school): Prime Minister, the reason we face a stagnant economy… Read more »

Your country faces a stagnating economy. Let us assume your Prime Minister (or President if that is who holds the executive power) seeks advice from two imaginary economists. PM: You two economists have different views on what our economic policy should be. What is your advice? FIRST ECONOMIST (Austrian school): Prime Minister, the reason we face a stagnant economy… Read more »