monetary policy

This article explains why quantitative easing had become the monetary tool of choice for the Federal Reserve and what kind of easing the Fed is now employing. Because the Fed feels constrained politically, it is unlikely to repeat…

Written and video statements explaining Minnesota Fed President Kocherlakota's dissent on 9 August 2011

The past two weeks have seen large disruptions in the global capital markets and various policy responses. Market participants are having a difficult time getting a handle on these developments. There are three things investors should…

I have been off the grid of late so I have limited blogging capacity. But I still wanted to present a different perspective on monetary policy here for a second given the recent Fed move to permanent zero. First, I should say that my view…

Politically the Fed is constrained. So this is the first salvo in a renewed easing campaign by the Fed. Right now everyone is acting like this isn’t QE. But I told you two months ago that it is.

If the Fed does not do anything new, Bernanke and Co. risk disappointing the market and the fallout that may follow. QE3 at this juncture does not seem a likely and few observers disagree. After the FOMC meeting is out of the way, the…

Sentiment remains poor ahead of FOMC meeting; safe haven trades to remain in favor. Euro zone remains under pressure despite ECB purchases of Italian and Spanish bonds . China data supports soft landing thesis; Asian central banks…

This statement was issued to demonstrate coordinated global support in view of recent market turmoil.

Standard and Poor’s downgraded U.S. creditworthiness to AA+, becoming the first to remove the triple-A status from the world’s largest economy and largest debtor. Moreover, a negative outlook has been retained. The element of surprise…

We repeat: the “debt problem” is a currency problem and the currency must and will collapse. The global monetary system exists at the pleasure of the Fed, which legally exists at the pleasure of Congress, which as we have learned only has…