Monetary policy

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    Fed failure in the forecast

    Ramesh Ponnuru of National Review Online highlights a problem linked to recent Federal Reserve projections. The Federal Reserve has since 2012 explicitly, and for longer than that all but explicitly, said that it is aiming for a target rate of 2 percent annual inflation, as measured by the…
    Mitch Kokai, September 18, 2020
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    Fed fails to fix its key problem

    Douglas Carr offers National Review Online readers a critique of the Federal Reserve‘s latest policy change. The Fed highlighted three new policy adjustments. The first acknowledges impediments to executing monetary policy with low interest rates. The Fed must move more quickly in adjusting its policy rates. Ironically, the…
    Mitch Kokai, September 15, 2020
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    Alberto Alesina, in memory

    Surprisingly, for as much as Alberto Alesina’s work has meant to my own understanding of markets and governments, a Google search indicates I’ve only mentioned him by name once before. Amity Shlaes has a wonderful tribute to Alesina, who passed away this weekend, as a person and an…
    Joseph Coletti, May 26, 2020
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    COVID-19 pandemic highlights Fed’s slippery slope

    Randall Forsyth of Barron’s notes concerns about the Federal Reserve’s potential action in the wake of the COVID-19 pandemic. The U.S. government’s involvement in the private sector has spurred calls for it to support beleaguered state and local governments, whose budget deficits are burgeoning due to increased spending…
    Mitch Kokai, April 20, 2020
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    In praise of Volcker

    Willis Krumholz of the Federalist explains how the late Paul Volcker put the country’s needs ahead of his own as chairman of the Federal Reserve. While jumping around between the Treasury Department, the private sector, academia, and the Federal Reserve Bank of New York, Volcker got a reputation…
    Mitch Kokai, December 17, 2019
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    Forbes bucks conventional wisdom on Libra, e-cigarettes

    Steve Forbes‘ latest contributions to Forbes magazine take on two recent controversies. First, he discusses Facebook’s focus on an alternative currency. [R]egulatory pressures have forced a number of companies that were partnering with Facebook on this project to drop out. And this gets to the real reason the…
    Mitch Kokai, November 20, 2019
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    The Boston Fed chief questions Trump’s economic moves

    Quin Hillyer of the Washington Examiner focuses on the concerns of a top Federal Reserve banker. Compliments are in order for Eric Rosengren, president of the Federal Reserve Bank of Boston, for speaking truth to President Trump’s bluster. Trump has spent more than a year trying to browbeat…
    Mitch Kokai, September 6, 2019
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    A problem with Modern Monetary Theory

    Jim Grant of Barron’s tackles the latest fad popular among those who think governments can spend as much as they want with impunity. Modern monetary theory is not so theoretical anymore. In all but name, it’s the description of Republican fiscal policy in this living moment. “Federal Borrowing…
    Mitch Kokai, August 5, 2019