QE, the expectations fairy and other bedtime stories
There are perhaps more myths about QE than almost any other monetary policy instrument. Here are five of the most pernicious QE myths.
Browsing Tag
stimulus
Full analysis: The Fed will not raise rates until at least mid-2015
The Federal Reserve's Open Market Committee met today. As expected, the Fed Funds rate stayed at zero percent. Most Fed watchers, however, wanted more clarity on the Fed's quantitative easing timetable, which the Fed laid out clearly. But…
Fed’s securities purchases blunt the impact of convexity hedging
Mortgage backed securities (MBS) have sold off sharply over the past month as fixed income markets face the new reality of rising rates. But unlike most other fixed income securities, MBS duration tends to increase with yield.
Outlook in US, UK, Japan and Australia
Daily comments on finance, economic and market news for 6 Jun 2013
On Italy’s decoupling from the periphery and Merkel’s electoral losses
I have been trying to break up the links posts because I have so many. So I have been writing brief theme posts to go with the links as I used to do when I had more time. I want to make this one short here and I have two topics to…
On the Italian Prime Minister’s view of austerity
Italy's new Prime Minister Enrico Letta is touted as a man who could change the politics of the EU. The Daily Telegraph in the UK even headlines his initial policy speech as "Italian PM Enrico Letta urges move from austerity to growth". But…
Europe again
I am not going to say a whole lot here in this post because I have been writing non-stop about Europe of late. I just want to share the European links with you. I think what the links show is that the European paradigm is in transition from…
Why the Reinhart-Rogoff paper was flawed right from the start
Reinhart-Rogoff’s paper has more serious flaws than an excel error. And austerity hysteria will not go away after Herndon-Ash-Pollin’s review. This is my message to you.
The Economy in the United States and the United Kingdom
Quick note here on the US and the UK to change things up a bit from the Cyprus obsession.
On the importance of supply side problems
Raghuram Rajan has an interesting post now up on Project Syndicate. The overall tone of it has an Austrian feel as it stresses the failure of stimulus to allow developed economies to attain higher GDP growth a full five years after a…