The Fed cannot save the day
The real solution has nothing to do with the Fed because the constraints are demand side and not supply side. But people will continue to exhort the Fed to do more and so they will do more.
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Yearly Archives
2012
Germany is a first class passenger on the Euro Titanic
I was on RT's Capital Account on Monday afternoon, talking about the euro crisis yet again. The video is below but I have a few comments before you watch it.
In the video, I say Europe can continue dithering for quite a while. There is…
Links: On price stability, mobile competition and the European crisis
Links from the past couple of days featuring articles on price stability, mobile competition and the European crisis and much more.
Daily: Europe moving from smaller bailouts plus austerity to bigger bailouts plus austerity lite
Germany, Spain, Italy and France have met to hammer out a unified front ahead of the upcoming European summit and Spanish bailout. This is likely a fleshed out version of the G-20 plan that Barack Obama was privy to. Their answer is the 120…
Full text: Moody’s downgrades firms with global capital markets operations
Editor's note: Moody's released the following press release in relation to actions it took on banks with global capital markets operations today.
Daily: Does Microsoft have its mojo back?
In the tech world the big news is Microsoft's unveiling of the Surface Tablet and Windows Phone 8 on back to back days. There is a lot of positive buzz around these two initiatives. The question, of course, is whether it will vault…
The ECB’s Bagehot Rule Policy
This week I am doing the weekly newsletter in two parts, both outside the paywall. This is part two. Previously, this column argued that it was folly for the euro zone to take the bailout and austerity approach because it risked breaking…
Why Germany cannot save the euro
This week I am doing the weekly newsletter in two parts, both outside the paywall. This is part one. As Charles Wyplosz has recently written, the euro zone's rescue strategy adopted in May 2010 has failed. Like his column, this column…
The Eurozone’s May 2010 bailout strategy is a disaster
The EZ rescue strategy adopted in May 2010 failed to restore debt sustainability, avoid contagion, or reduce moral hazard. This column argues that a volte face is needed. The debt of Greece, Portugal and Italy – and perhaps Ireland, Spain…
QE wouldn’t have made any difference because lower rates won’t fix the economy
The big news in the US today was the Federal Reserve's Open Market Committee's decision to extend its simultaneous purchase of longer-dated Treasuries and sale of shorter-dated ones. This effort, dubbed Operation Twist, was set to expire at…