There is disagreement within the FOMC. How will it be resolved?
Category Archives: Federal Reserve
Will the Fed do more?
If conditions deteriorate further, I believe the answer is yes.
Ever so slightly less contractionary
What is the significance of yesterday’s statement from the FOMC?
Options for monetary stimulus
The latest economic data have surely warranted a downward revision in the Federal Reserve’s assessment of near-term economic performance. It therefore might be a good time to review the steps the Fed could take if it wishes to provide further economic stimulus.
Guest Contribution: Should central banks target higher rates of inflation?
By Olivier Coibion, Yuriy Gorodnichenko, and Johannes Wieland
Today, we’re fortunate to have Oli Coibion, and Yuriy Gorodnichenko, Professors of Economics at William and Mary and at UC Berkeley, respectively, and Johannes Wieland, Ph.D. candidate at UC Berkeley, as a Guest Contributors.
Fighting deflation
The Bureau of Labor Statistics reported Friday that the seasonally adjusted consumer price index declined in June to the lowest level since November. When we start to talk about the level of the CPI rather than its rate of change, you know that deflation could once again become a key concern.
Bob Hall on financial frictions
Via Mark Thoma and Arnold Kling, the Federal Reserve Bank of Minneapolis published an interview with Stanford Professor Robert Hall. The interview is terrific not just because Bob is a very smart guy, but also because interviewer Douglas Clement did a great job choosing the right questions. The whole thing’s worth reading, but I wanted to focus today on Bob’s comments on the role of financial frictions in the crisis and policy options to address them.
Inflation or deflation?
For the last year and a half my assessment has been that the near-term pressures on the U.S. economy were deflationary, while long-term fundamentals involve significant inflation risks. It’s time for a look at the data that have come in over the last 6 months, and time to say that I still see things exactly the same way.
Links for 2010-06-16
Three interesting figures on fuel consumption, job creation, and prospective interest rates.
The European bailout
As Europe and the IMF announce close to a trillion dollar rescue package, Megan McArdle asks, what’s the benefit to the countries providing the funding? Here are my thoughts.