Or, breaking up the big banks might provide some visceral joy, but it’s not clear to me that solves the key problem of financial fragility in modern capitalist systems.
Category Archives: financial markets
Guest Contribution: “The ECB and the Fed: A Comparative Narrative”
Today, we are fortunate to present a guest contribution written by Dae Woong Kang, Nick Ligthart, and Ashoka Mody, Charles and Marie Visiting Professor in International Economic Policy, Woodrow Wilson School, Princeton University.
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Spreads and Recession Watch
Since we’re talking recession [0], it’s of interest to see what market indicators are saying, for the US and for the world. First, the term spread for the US:
Are stocks and housing off on another bubble?
As a new year gets under way [Nobel Laureate Robert] Shiller fears that advanced economies could be on the cusp of another stock market and property bubble that could end in tears….
“I’ve tried to inquire why we are having these booms right now at a time of so-called secular stagnation with low interest rates, and arrived at the thought that low interest rates are promoting these bubbles.”
Some International Finance at ASSA
Full Allied Social Sciences Association program, with links to some papers, here.
Implementing monetary policy in 2016
On Wednesday the Federal Reserve announced that it is increasing its target for the fed funds rate to a new range of 25 to 50 basis points (0.25% to 0.5% annual rate). How does the Fed plan to accomplish this, and what does it mean for other interest rates?
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Guest Contribution: “U.S. Monetary Expectations and Emerging Market Debt Flows”
Today we are fortunate to have a guest post written by Eric Fischer, PhD candidate at the University of California, Santa Cruz.
Guest Contribution: “Should Congress ReFORM Fed Transparency?”
Today, we are pleased to present a guest contribution written by Alex Nikolsko-Rzhevskyy, Associate Professor of Economics at Lehigh University, David Papell and Ruxandra Prodan, respectively Professor and Clinical Assistant Professor of Economics at the University of Houston.
The RMB in the SDR: What Does It Mean for RMB Internationalization?
The IMF staff has now determined the Renminbi should be included in the IMF’s unit of account, the Special Drawing Right (SDR). Reviews of the decision are covered here and here. But as the articles note, there is a long ways to go before the RMB is internationalized so as to rival the dollar or euro.
Guest Contribution: “Games Countries Play”
Today we have a guest contribution written by Jeffrey Frankel, Harpel Professor of Capital Formation and Growth at Harvard University, and former Member of the Council of Economic Advisers, 1997-99. This post is an extended version of a column that appeared in Project Syndicate.