monetary policy

Let's attack the question of hyperinflation using Zimbabwe and Weimar Germany as examples. These are the two most extreme cases of hyperinflation that economic historians have ever witnessed. They are instructive regarding what causes…

The results are in from the poll on Greek sovereign bond default. To the question of "Will Greece default?" a plurality said "Yes, but they will stay in the euro-zone after a managed restructuring." Another 26% answered…

Regular readers know that, while I have a little of what Marshall Auerback calls deficit terrorism in my DNA, I fully support fiscal stimulus as a means to arrest a deep downturn.  The horrendous Keynesian nightmare My move into…

Highlights The US dollar is somewhat softer today as the market takes a pause to consider recent developments.  News that Fitch reaffirmed its AAA rating for Spain, despite S&P’s move yesterday, and heightened speculation that…

The Bank of Canada's statement yesterday, where it dropped it conditional promise about keeping rates steady and raised this year's growth outlook triggered new Canadian dollar buying.  We too have been bullish the Canadian dollar.…

Marshall Auerback here with a report from King’s College, Cambridge, where some of the world’s policy makers and thought leaders are gathered to discuss a new direction for economics. Over the last thirty years, we have steadily moved from…

Sir Alan Greenspan was in DC yesterday, defending his legacy before the Financial Crisis Inquiry Commission. James Kwak has a piece up on Sir Alan called "Greenspan: Love Him, Hate Him." I seriously doubt many people 'love' Alan Greenspan…

Below is a link to the speech Thomas Hoenig, president of the Reserve Bank of Kansas City, gave today in Santa Fe, NM.  The critical part of his speech was: Under this policy course, the FOMC would initiate sometime soon the…

Highlights The US dollar is enjoying broad gains today as the Greece’s fiscal woes have returned with vengeance.  Market News International reports, that have been given some idea of what an IMF program could entail, are now looking…

In June of last year, I wrote a post called "Central banks will face a Scylla and Charybdis flation challenge for years." The crux of the piece was that we are living in a world in which debt deflation is always one downturn away,…