Monthly Archives: May 2016
Rules Are Green and Discretion Is Red in the Monetary Game
Raghuram Rajan, Governor of the Reserve Bank of India, is calling for a reform of the international monetary system. He has been calling attention to problems in the system for a while, and now he is looking for a solution. … Continue reading
New Test Finds No Impact of QE on Long-Term Interest Rate
The Fed’s stated purpose of quantitative easing (QE) was to lower long-term interest rates, and many papers have endeavored to test empirically whether it achieved that purpose. Some, such as the paper by Gagnon, Raskin, Remache, and Sack, have looked at … Continue reading
The Fed’s Normalization: How Long and How Far?
The Monetary Policy Subcommittee of the House held a hearing yesterday on “Interest on Reserves and the Fed’s Balance Sheet,” a difficult, but important and timely subject as the Fed begins what it calls its normalization process, or its transition … Continue reading
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A Reawakening of International Monetary Policy Research
International Monetary Stability: Past Present and Future was the topic of this year’s monetary policy conference held last week at Stanford’s Hoover Institution. With highly volatile exchange rates, the spread of unusual monetary policies, and disappointing growth and stability, it … Continue reading
Economics One 