monetary policy

Tepper says if the market falls a couple hundred points maybe they would reconsider. But the only result now might be more food and energy inflation.

On balance it would then seem that the consensus remains weighed towards no QE3 either because it is not needed or because it does not work in the first place. I think it is very simple in the end though. If sideways movement gives way to a…

In the US, you have a weakening recovery, uneven job growth, less accommodative monetary policy, tightening fiscal policy at the federal and local levels, austerity in Europe and tightening in emerging markets coupled with secularly high…

In a recent column at VoxEU , Hans Werner Sinn of the prestigious Institute for Economic Research claims that the German Bundesbank is effectively propping up banks across the Eurozone’s periphery. He adds that doing this risks a major…

Raghuram Rajan, one of the few mainstream economists to warn of the US housing bubble, has recently written a piece which is highly critical of US monetary policy. His view, one that I share, is that US policy favours debtors over savers in…

We are in a mid-cycle slowdown not dissimilar to the ones we experienced in 1995 or 2005. I am remarkably sanguine about the ability of policy makers to induce a cyclical recovery via fiscal and monetary stimulus. And, of course things…

So what are the realistic chances of another bout of QE right now? Well according to Robin Harding they are pretty slim, and it is hard not to agree with him (due to the anticipated voter backlash in the US), yet among professional analysts…

Marc Chandler: The Fed cannot rule out renewed Treasury purchases. It does not or should not deny itself its policy options. It is committed to do what is necessary to prevent a slide into deflation, which indeed is a forgotten element of…

I am more cautious than optimistic on risk assets and the global economy. From where I sit global growth prospects are not improving; they are weakening.

As Jon Hilsenrath pointed out in Thursday’s Wall Street Journal Bernanke has already indicated that the hurdle to more quantitative easing is very high. This is not to say that QE3 is off the table forever. But QE3 will only become a…