Posts filed under “Economy”
Quantitative easing over. It is a good occasion to consider what we know about central bank intervention, when it is appropriate and when it isn’t. We have a century of broad and deep central bank history and data upon which to make our assessment.
Yet we seem to ignore much of what has been learned in favor of unproven beliefs and disproven zombie ideas.
Are we doomed to repeat the same errors? When it comes to economic policy, it certainly appears that way. Despite a century of historical experience, inflationistas and deficit scolds on both sides of the Atlantic recommend the same wrongheaded policies over and over.
A bit of background: In 2010, a group including Michael J. Boskin, Niall Ferguson, James Grant, Douglas Holtz-Eakin and others, published an open letter to the Federal Reserve Chairman Ben Bernanke. It was a critique of QE, and warned the program of bond-buying would debase the dollar and lead to higher inflation.
At the time, I found the letter full of the sorts of pompous predictions and arrogant self-assurance that is often the subject of criticism in these columns. Whenever that happens, I make a note to myself to revisit the issue a few years hence.
click for larger graphic Source: McKinsey h/t Know More About 1.5 billion people, or 22 percent of the world’s population, lives in 600 cities. They account for an outsized portion of global wealth. According to a new report by McKinsey & Co.: Half of global GDP in 2007 came from 380 cities in…Read More
A Tale of Two Economies — It Was the Better of Times, It Was the Worst of Times Paul L. Kasriel October 18, 2014 A Tale of Two Economies – It Was the Better of Times, It Was the Worst of Times As quantitative easing comes to an end (apparently) by the Fed…Read More
Could the Dissolution of OPEC Become a Golden Swan? Fifty-four years of inflated energy prices may be coming to an end. Doug Kass Real Money Pro, October 8, 2014 | 7:31 AM EDT We all know that I’m bearish. To me (at the current time), this is a stock market with no memory,…Read More
Source: FT Europe is experiencing a reversal. The Financial Times writes: The withdrawals brought to an end 12 months of almost continuous inflows, powered by confidence that the eurozone debt crisis had retreated and that the region’s economies were returning to growth. In the 12 months to July, assets under management at EPFR-tracked European…Read More
The U.S. Bureau of Economic Analysis (BEA) recently released a trove of data on the individual state economies. You can zoom in on quarterly state-level gross domestic product (GDP) series begins from 2005 through the 2013 at Macroblog of the FRBA. But I thought it might be instructive to see what the map looks like…Read More