Guest Author 294 posts 0 comments

By John Mauldin Loose Monetary Policies and Emerging Markets So far we have focused on the United States and other mature, developed economies that have far too much debt. With Japan, the United States, the United Kingdom, and…

Is the global saving glut to blame for global imbalances? This column argues that the role played by loose monetary policy from the US Federal Reserve should not be overlooked. The prolonged decline in long-term interest rates in the…

In my previous missive I concluded that investors should stay true to the principles that have always guided (and should always guide) sensible investment, but I left readers hanging as to what I believe those principles might actually be.…

By Warren Mosler (as posted on the 10th) Also see other similar arguments from Credit Writedowns' on how quantitative easing really works. Background information first, answer later- The Fed sets the fed funds target at their…

By Warren Mosler In the context of this ‘everyone’s out of paradigm’ world, it makes sense for Japan’s MOF (Ministry of Finance) to buy dollars vs yen. But it makes no sense to do this as a coordinated effort with other nations also…

By Warren Mosler As previously discussed, the US should outlaw the use of libor by its banking system. It makes no sense to allow US dollar rate setting for our banks to be set overseas by the BBA. Setting our banking system’s dollar…

As promoters of MMT, we are all very keen on Abba Lerner, who was one of the first to articulate the foundations of the approach. Lerner believed that the government should maintain the level of aggregate spending in the economy (either by…

As part of the US policy response to the global crisis, the Dodd-Frank Financial Reform Act calls for regulators to identify systemically risky financial firms – the sort that took the US financial crisis global. But how to identify these…

China is grappling with rising inflation. This column argues that the Chinese government, instead of focusing on micro-managing the economy, should grant its central bank room for further reform of its monetary policy. To make more…