Krugman’s had a go, Cowen’s had a response and now Roche has weighed in.
So why are corporates hoarding cash, and is this good or bad for the economy? Read more
Tyler Cowen writes:
In one very real sense, there is a significant demand shortfall. Yet repairing that demand shortfall requires many building blocks. Nominal reflation (which I favor) is only one of those building blocks. The others are rooted in trust and perceived real wealth, which are both slower to repair and require different policy instruments, plus the mere passage of time. Read more
By John McDermott and Cardiff Garcia
Here’s a corporate bond mystery for you. Read more
Central banks are no strangers to criticism, but we wonder if the Bank of England was remotely prepared for the smackdown it was just given by FT economics editor Chris Giles:
The forecasts used by the Bank of England to set interest rates are biased and contain little useful information, a Financial Times audit has demonstrated. Read more