|
 Fed Is On To A 'New Kind Of Policy,' Stanford's John Taylor Says
interview with John B. Taylor via Bloomberg Hoover Institution fellow John Taylor talks about Federal Reserve policy including the raising of interest rates.
0 Comments
 How Fed Rate Increases Affect the Economy
Mickey Levy, E21 My colleagues and I recently analyzed every Federal Reserve interest rate increase episode between 1983 and 2015 and found several patterns emerge: bond yields rose, the yield curve flattened, the U.S. stock market either chopped sideways or rose, the U.S. dollar fell as frequently as it appreciated, and as the Fed raised rates from accommodative to a neutral monetary policy, the economy continued to grow, largely unaffected by the rate increases and removal of monetary accommodation. Read more here....
Continually Mistaken, Chronically Admired
The work of Nobel Prize-winning economist Joseph Stiglitz is a study in elite myopia.
How the Sun Foreshadowed the Trump Era
By IRA STOLL, Special to the Sun | September 25, 2018 https://www.nysun.com/new-york/how-the-sun-foreshadowed-the-trump-era/90397/  Don't blame business for slow wage growth
Michael R. Strain | Bloomberg Opinion Are wages determined by market forces, or do businesses get to decide what pay they offer to workers? Michael Strain believes that determining why wage growth has been sluggish for years is at the heart of the debate about the economy. Despite several other important factors, Strain argues that worker productivity remains the dominant force in setting wages. Mobility costs are much stronger in the near term than over longer periods of time, and intuitively there is a limit to how far an employer can push its wages below the market wage. The strength of market forces can be dispiriting for those who want wages to grow faster; after all it is much harder for government policy to spur productivity growth than to clamp down on anticompetitive corporate practices. The economics and emotions behind slow wage growth Michael R. Strain | Bloomberg Opinion Unemployment continues to fall, and the number of jobs is increasing, yet wages are failing to rise. Michael Strain asks why this is happening and proposes several explanations for why wage growth is slower than we'd expect. Strain proposes that there might be “hidden slack" in the labor market and that the rate of employment for people in their prime working years is still below its prerecession peak, showing that the official jobless rate isn't giving the full picture. Another possibility he proposes is that the composition of the workforce is changing in ways that affect pay. Strain concludes that some combination of several factors is likely the culprit, making him hopeful that a healthy rate of wage growth is likely in the future.  Who Really Creates Value in an Economy? Mariana Mazzucato takes aim at neoliberalism and its academic cousin, "public choice" theory. The Global Economy Ten Years After
Jim O'Neill warns that while growth since 2008 has been stronger than many realize, stormclouds are gathering.  The Makings of a 2020 Recession and Financial Crisis Nouriel Roubini and Brunello Rosa list ten factors all pointing toward an economic downturn that will be more severe than the last. The crisis next time
Carmen M. Reinhart and Vincent R. Reinhart | Foreign Affairs At the turn of this century, most economists in the developed world believed that major economic disasters were a thing of the past or at least relegated to volatile emerging markets. Financial systems in rich countries were too sophisticated to collapse, and recessions would remain short, shallow, and rare. There remains a central warning of 2008: Countries should never grow complacent about the risk of financial disaster. The next crisis will come, and the more the world forgets the lessons of the last one, the greater the damage will be.  Nine Lessons from the Financial Crisis – Mohamed El-Erian, Bloomberg A Manifesto for Renewing Liberalism From The Economist: “In all sorts of ways, the liberal meritocracy is closed and self-sustaining. Conference on the 10th anniversary of the 2008 financial crisis Peter J. Wallison | AEI event Today at AEI, expert panelists will outline the principal reasons that have been advanced as causes of the financial 2008 crisis. They will discuss how conceptions about the causes of the crisis influenced the reforms that were ultimately adopted and whether these reforms have been or will be effective. Tune in for a special lunchtime discussion with House Committee on Financial Services Chairman Jeb Hensarling (R-TX). Public opinion 10 years after the financial crash Karlyn Bowman | American Enterprise Institute Using survey data collected before the 2008 financial crisis, Karlyn Bowman shows that Americans have long had doubts about Wall Street, banks, and financial institutions. The 2008 crash profoundly affected people’s views of Wall Street, the economy, and their family’s prospects. For example, in a November 2009 Gallup poll, the view that it was a good time to find a quality job dropped to its lowest level ever, 8 percent. There has been a small recovery in the major confidence-in-institutions indicators, and most Americans do not feel the economic system is more secure today than it was before the financial crisis. Government ignorance is no excuse for another dreadful financial crisis Peter J. Wallison | The Hill In light of the 10-year anniversary of the 2008 financial crash, Peter Wallison assesses the current state of the economy. He argues that without a halt in current government housing policies, there is likely to be another financial crisis, again caused by a government-dominated housing finance system. The system is functioning in substantially the way it functioned before the crisis. Wallison identifies rising housing prices and notes that of particular concern is that the highest rate of increase is occurring for the lowest price homes, exactly the opposite of what a sensible housing policy would produce. Lessons Not Learnt From The Global Financial Meltdown
quoting Raghuram Rajan via The Navhind Times Ten years ago, on September 15, 2008, Lehman Brothers filed for chapter 11 bankruptcy. The mayhem that followed led to the worst global financial crisis after the Great Depression. Like the latter, the 2008 financial crisis has been a matter of much discussion – from Congressional testimonies to saucy Hollywood productions leave alone the academic garbage that it generated.  The Case for Monetary Policy Rules
Peter Ireland, E21 Speaking at last month’s economic policy symposium in Jackson Hole, Wyoming, Federal Reserve Chair Jerome Powell described vividly the challenges that central bankers face in a world of constant change and uncertainty. These challenges make it impossible for the Fed to perfectly fine-tune the economy. Chair Powell’s preferred, gradual approach to raising interest rates is therefore justified. The Fed could meet these challenges even more effectively, however, by adopting and following a monetary policy rule. Read more here.... DIGITAL MEDIUMS UNDERWRITE NEW GROWTH, THE ECONOMICS OF THE FUTURE & THE FAILURE OF GLOBALISM9/7/2018  The Failures of Globalism
By Molly Dinneen, Strategy Bridge: “Globally, unemployment insecurities develop in parallel with technological improvements fostered by globalism that are expected to lead to factory workers losing their jobs to machines or because they lack the necessary technical education.”
17 Years Of Economic And Security Challenges
by John B. Taylor via Economics One Today we remember September 11, 2001 and all that has changed in the past 17 years. JOHN B. TAYLOR'S ADVICE FOR EMERGING ECONOMIES & NORMAN BAILEY ON THE GREAT DEPRESSION TODAY9/4/2018  Analysis: How Do Developed Economies Maintain Their Low Interest Rates?
quoting John B. Taylor via Hurriyet Daily News How do developed economies maintain their low interest rates? The Taylor rule is a mathematical formula developed by American economist John Taylor to help central banks set short-term interest rates based on economic conditions and inflation. Its aim is to help central bankers make rational monetary policy decisions. In this sense, it acts as an objective benchmark by setting the optimal rate that balances inflation and growth targets. |
AuthorAn authority on Civil-Military Relations; Southwest Asian Political Economy, and Pentagon Acquisition Reform . 
FOUNDATIONS OF ECONOMICS
FOUNDATION for ECONOMIC EDUCATION
SERGEY ALEKSASHENKO FORMER RUSSIAN CENTRAL BANKER
THE GRUMPY ECONOMIST
ROBERT SAMUELSON WASHINGTON POST
JOHN B. TAYLOR ECONOMICS ONE BLOG
MILTON FRIEDMAN COLLECTED WORKS HOOVER
ALLAN MELTZER HOOVER INSTITUTION
KEVIN WARSH HOOVER INSTITUTION
KEYNES VS. HAYEK RAP
KEYNES VS. HAYEK RAP ROUND 2
Archives
July 2020
Categories |
||||||||||||
RSS Feed