Today, we’re fortunate to have Alex Nikolsko-Rzhevskyy, Assistant Professor of Economics at Lehigh University, David Papell and Ruxandra Prodan, Professor and Clinical Assistant Professor of Economics at the University of Houston, as Guest Contributors.
Category Archives: Federal Reserve
More on the next Federal Reserve chair
The Financial Times has published some further discussion on who should be the next Fed Chairman.
Brad DeLong argues for Larry Summers, and
I make the case for Janet Yellen.
The case for Janet Yellen as Federal Reserve chair
I wanted to express some of the reasons why I feel that Janet Yellen would be an outstanding choice to head the Federal Reserve.
Prescience, 2007 edition
Having coauthored an entire book on the financial crisis of 2008 (Lost Decades, with Jeffry Frieden) I think that one of the most important qualities for a policymaker is the ability to look forward, and assess potential dangers and understand why those dangers arise. Looking back to 2007, it’s of interest to see who foresaw the impact of adverse feedback loops in the financial system as risk was repriced.
The all-powerful Fed
The conventional wisdom is that the big jump in interest rates since the beginning of May is the result of a poorly conceived or poorly communicated shift in policy by the U.S. Federal Reserve. The conventional wisdom is wrong.
The end of low interest rates
The yield on 10-year U.S. Treasury securities averaged 1.8% during 2012, the lowest levels in 60 years. But that episode may now be behind us.
It’s not just the Fed
The yield on 10-year U.S. Treasuries has jumped 50 basis points since the start of May, leading some to speculate that the market is already starting to price in anticipation of an end to the Fed’s bond-buying program. There may be some truth to that, but it’s only part of the story.
Bernanke says no change for now
In testimony before Congress today, Bernanke explained why the Fed’s large-scale asset purchases are continuing.
Who is holding all those U.S. dollars?
If recent trends continue, in a few months there will be $1.2 trillion in Federal Reserve notes (otherwise known as dollar bills) in circulation. Who is holding all these?
Guest Contribution: “Is the Federal Reserve Breeding the Next Financial Crisis?”
Today, we are fortunate to have a guest contribution by Ambrogio Cesa-Bianchi and Alessandro Rebucci. It is based upon Does Easing Monetary Policy Increase Financial Instability?. The views expressed in this column are the authors’ and not necessarily those of the institutions with which they are affiliated.