Monetary System

Below is a speech by Philadelphia Federal Reserve President Charles Plosser recommended a more circumscribed role for the Fed.

Below is the full text of a speech by Federal Reserve Governor Daniel Tarullo on regulation of non-bank financial institutions.

As I have been intimating for the last few months, the United States is in the midst of a regime change in monetary policy. We are moving from quantitative easing to forward guidance as the main unconventional policy tool to guide Federal…

Given the relatively low default rates in auto loans, banks' credit departments have loosened lending requirements.

According to an account in the Financial Times last week, the latest rate cut by the ECB created a worrying north-south split, with the German-centered group opposing rate cuts and the southern faction wanting them. Today Austrian and…

I've suggested previously that QE could actually be deflationary. I looked at it from several perspectives - collateral effects, the monetary transmission mechanism, distributive effects, even Peter Stella's "deadwood" inhibiting bank…

Yesterday the European Central Bank cut the interest rate on its main refinancing operations by 25 basis points to a record low 0.25%. It also cut the rate on the marginal lending facility by 25 basis points to 0.75%. The news was…

Current-account deficits have caused problems in several Eurozone countries, but surpluses are also an issue. This column argues that surpluses are detrimental to the welfare of the population to the extent they are driven by structural…

Paul Krugman's use of the unex­pected phrase 'endogenous money' has moti­vated me to pub­lish, ahead of sched­ule, a model com­par­ing Loan­able Funds to Endoge­nous Money that I promised to pro­vide in the dis­cus­sion on Nick Rowe's blog.

Newman: "in my own book the explanation starts the cycle with government spending, thus adding to the money supply, and then issuing treasuries for roughly equivalent amount. The bond vigilantes really have it backwards.