In this guest post, Bill Nelson, formerly a deputy director of the Federal Reserve Board’s Division of Monetary Affairs and the current chief economist of The Clearing House, explains how the open-ended asset purchase programme caused Fed officials to rethink their approach to managing the balance sheet.
In this guest post, Manmohan Singh of the International Monetary Fund and Phil Prince of Pine River Capital Management argue that the use of longer-term securities as collateral for short-term borrowing should affect how central bankers think about “money”. All views expressed are of the authors only and do not represent the opinions of the IMF or Pine River Capital.
A morally odious theory is empirically unsupportable and increasingly questioned by a younger generation of central bankers. Expect politicians to make more noise about the Fed’s controversial choices after Yellen is gone.
The ECB’s direct buying of corporate bonds is also a way of accelerating the development of European capital markets.
How are central banks expected to function if the world’s smartest economists and policymakers can’t even agree on the basics?
You’d think economies freed from “golden fetters” would have less economic volatility and lower risk of catastrope. And yet…
Target2 balances reflect euro area’s potential to be better than traditional exchange rate peg regime
Think of it within the context of the balance of payments as foreign exchange reserves that can never be depleted.
Hobby Lobby agrees to forfeit 5,500 artifacts smuggled out of Iraq; sleeping with the enemy can cost a bank a lot of money; yield hunger; the Fed and technocratic illusions; if you want vol wish for war; NYT wedding pages; George RR Martin’s soup obsession; other stuff.