Monetary policy

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    Experts Share Concerns about Fed’s Role

    National Review Online highlights a letter from more than 40 economics experts. It raises concerns about an apparent change in the Federal Reserve’s role. The Fed is among the nation’s most important institutions. Its monetary and regulatory mandates are essential for economic stability. However, based on recent activity,…
    Mitch Kokai, June 18, 2021
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    Inflation Nation

    If you’re someone who carefully monitors your monthly spending, you’ve witnessed prices going up on a variety of goods, from gas and lumber to staple products like corn and coffee. I don’t know which is worse, last year’s Clorox wipe shortage or today’s coffee bean prices. Thoughts and prayers appreciated.
    Brooke Medina, May 27, 2021
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    Inflation fears return for some

    John Cochrane and Kevin Hassett write at National Review Online about the possible return of the dreaded “I” word. Many people today have little memory of the dangers associated with high inflation. [T]he vaccinated, post-COVID boom is on the way. Most people have money, and are ready…
    Mitch Kokai, April 27, 2021
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    Nobody expects a debt crisis until they do

    As official Washington deepens its commitment to deficits and debt regardless of potential inflation or other repercussions, I recently came across an International Monetary Fund working paper by Paulo Mauro and Jing Zhou who found, “Government borrowing costs [on new debt] often rise abruptly and sharply, but just…
    Joseph Coletti, January 22, 2021
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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