quantitative easing

There will be no stimulus unless the economy and/or asset markets deteriorate further.

What happens on August 3rd if no debt ceiling negotiation is reached in the US. This column argues that Treasury could go around, not over the debt ceiling limit by using its constitutional authority to mint money.

The Fed could do a number of things: rate easing, municipal easing, inflation targeting, nominal GDP targeting. It is just that “the forward-looking cost-benefit analysis has shifted away from the potential benefits and towards greater…

The ECB does have the power to end this. They are not doing so for ideological reasons. Let me suggest two scenarios.

Clearly, the Europeans’ dithering has had catastrophic consequences. The extend and pretend strategy has not prevented contagion from infecting the core. So we need to see a response here. In the shorter-term, the Europeans are likely to…

It is not clear that there is a political consensus for a stand-alone tax holiday. There may be support for the stand-alone tax holiday as part of a larger corporate tax reform effort. If it is enacted, job growth and capital investment is…

For ideological reasons, one might believe that limiting or reducing government is better. However, it does not follow that doing so is a painless exercise.

Comstock Partners writes that a QE3 program is not completely off the table. It just appears at this point that the bar for doing it is so high that a prerequisite would be a collapse in the economy and a declining stock market. That would…

For my part, I am with Richard Koo. Monetary policy reflation will not work in a balance sheet recession when fiscal policy is contractionary. But at some point, the Fed will be compelled to act anyway.

Last week, when discussing what QE3 could look like I indicated that were the Federal Reserve to start expanding its balance sheet, QE3 will see interest rate caps after a pause and period of reflection. Let me address the differences…