Browsing All Posts filed under »Federal Reserve«

Money, Money, Money–Janet Yellen @ the Fed, QE on the rise but slower, and more!

January 10, 2014 by

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We’ve had tons of economic news worth highlighting over the last month, but Christmas offered much more fun than writing blog posts.  So here is a quick review of several economic issues that will continue to be issues in 2014. First up is the Senate confirmed Janet Yellen as the first female Federal Reserve Chair […]

Common Sense Economics

November 5, 2013 by

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Alan Greenspan was being interviewed about his new book The Map and the Territory in Time magazine recently and responded to the question, “Knowing what you know now, what would you have done differently during your time as chairman of the Fed?”  His response was in part, “I always knew debt was important.  If I […]

Janet Yellen’s Nomination and Her Confirmation’s Impact on Monetary Policy

October 10, 2013 by

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Yesterday Barack Obama nominated Janet Yellen to become Chairwoman of the Board of Governors of the Federal Reserve. Borrowing from Stanly Kubrick’s classic film Dr. Strangelove or: How I Learned to Stop Worrying and Love the Bomb and with apologies to Slim Pickens, this is how I perceive Yellen’s nomination (and subsequent Senate confirmation) will impact […]

Who to blame for the Gov’t shutdown? I blame the Fed and bad economic theory!

October 4, 2013 by

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You say “Really?  Are you just an anti-Fed nut case?”  Well, I’m certainly anti-Fed, and my wife won’t confirm or deny #2.    But let me make my case.  As economist Russ Roberts likes to say, economists often tell “stories” that we think reflect reality.  These stories are backed by a particular theory and often have […]

Bubble, Bubble, Toil & Trouble: The Fed found it easy to build a bond bubble, but finding it more difficult to unwind

July 11, 2013 by

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There is little doubt the Fed’s easy money policy, and especially the deliberate QE of buying long term instruments, has resulted in speculative flows investing in those assets.  As we related last week, the Fed’s discussion of tapering has resulted in immense turmoil, as speculators are wondering if capital needs to be redeployed away from […]

Market uncertainty w/end of QE proof of central claim of Austrian Business Cycle Theory

June 28, 2013 by

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Many critics of Austrian economic theory on the causes of business cycles suggest that the lack of significant CPI-based inflation shows the Austrians are all wrong.  Yet, as I have argued earlier, CPI inflation is NOT what Austrians are concerned with.  Rather the central banks artificially lowering interest rates leads to malinvestment and a distortion […]

Texas Gold going home: the latest body blow to Federal Reserve credibility?

March 29, 2013 by

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A few months ago the big revelation to gold bugs was Germany wanted its gold back from the Federal Reserve.  What’s the world coming to when central banks don’t trust each other?  Further, with central banks net buyers of gold for the last few years, something seems afoot in the global currency markets.  In perhaps […]