asset-based economy

By Marshall Auerback This post first appeared on AlterNet Cutting rates at this juncture simply perpetuates current bubble-like conditions and therefore will make the ultimate outcome worse when the bubble inevitably bursts. The one…

With two recent Fed governors - Tarullo and Brainard - expressing a need for caution with normalizing Fed policy, I wanted to break down how I tend to think about monetary policy and its affect on resource allocation and private portfolio…

Yesterday was a big conference day in Washington, D.C., with the IMF and World Bank meeting and with the Brookings Institution holding an event featuring the Greek and German finance ministers. While I attended the Brookings event, the…

This fall, oil prices have tumbled so quickly that the effect on inflation, monetary policy and the economy is likely to be dramatic. As yet, however, we don’t know what those effects are likely to be, in part because the economics…

Last week, I wrote a fairly comprehensive piece laying out some of the macro issues around the Fed and other central banks’ ultra-easy monetary policy. The gist of that piece was that, due to the political economy, monetary policy is now…

The 2014 BIS Annual Report warns again about the perils of ultra-easy monetary policy as it did in the lead-up to the Great Financial Crisis. I think the BIS could prove a Cassandra here and will explain below. Nevertheless, many refuse to…

The title here is a bit provocative I know. But it is really something I stole from an article about Stephen Roach’s view that I will use as a jumping off point for my Friday review.

I am not impressed with macro policy that is managed purely to give a cyclical boost to the economy at the expense of secular sustainability. That makes it hard to look at what’s happening with macro policy now without scepticism and…

Expect the ECB to do something in June, but not QE Ukraine is the top geopolitical risk Rotation into defensive names in the US is worrying China is exporting deflation Easy money is causing a reaching for yield

I believe investors are reaching for yield and there are multiple signals indicating such. This is a direct outgrowth of easy money policies by central banks as nominal yields are at record lows and real yields are negative. Investors,…