Monthly Archives: May 2010
The Fed’s Swap Loans and Libor – OIS Spread
For about two years—from August 2007 to September 2009—fluctuations in the spread between dollar Libor and the overnight index swap (OIS) served as a valuable quantitative indicator of financial stress in the interbank loan market. It also served as a … Continue reading
Posted in Monetary Policy
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The Administration and the IMF on the Multiplier
In a soon to be published paper, several economists at the International Monetary Fund report estimates of government spending multipliers which are much smaller than those previously reported by the U.S. Administration. In order to obtain the estimates the IMF … Continue reading
Posted in Fiscal Policy and Reforms
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The Euro’s Post-Package Slide
In a column Central Banks are Losing Credibility published in the Financial Times last Tuesday, just after the announcement of the European rescue plan, I noted that the euro’s quick set-back hours after its initial boost was a harbinger of … Continue reading
Posted in International Economics
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More on Chapter 11F
My column published last Monday May 3 in the Wall Street Journal “How to Avoid a ‘Bailout Bill’” generated a lot of questions about the idea of a “Chapter 11F,” which I argued is a needed alternative to bailouts. Chapter … Continue reading
Posted in Financial Crisis
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Latest Data Continue To Show Little Impact of Government Stimulus on GDP
The 3.2 percent growth rate of real GDP in the first quarter (released by BEA yesterday) confirms that the recovery is looking more U-shaped than V-shaped. But it also provides further evidence that the stimulus package of 2009 has had … Continue reading
Posted in Stimulus Impact
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Economics One 