The QE retreat
- Eight questions every first-time buyer should ask
- MiFID II: not all doom and gloom
- Tesla: getting to Q3 profitability
- Turkey contagion fears are overblown [Update]
- The chance of an inflation shock may be higher than you think
- Sorry Tim, the humanity is not being drained out of music
- Digital crop circles
- What could go wrong here?
- Sirius Minerals: money for a hole in the ground
- The Bank of England has a strange idea of what QE achieved
- One for the ladies...
- 'Of course, many ridiculous papers appeared'
- Is a change goin' to come?
- The capacity's not there yet (and probably never will be)
- Musk and Tesla are not inseparable
- Libraries, from Carnegie to Bezos
- Crypto & government: from anarchy to amity in the USA
- 'I'm sorry Dave, I'm afraid I cannot sanction this Series B round'
- RBC, through the FANG barrier
- Self-help to buy
The IMK is bearish on Germany, and the Telegraph is enthralled.
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.
The ECB’s direct buying of corporate bonds is also a way of accelerating the development of European capital markets.
If nobody understands the consequences of what you’re doing, is it even happening at all?
The Fed’s balance sheet is no longer in expansion mode, which means it’s time for post-mortems of the most recent asset purchase programme. (Our colleague John Authers has a very good round-up of what did and didn’t happen since QE3 began.) We want to focus on the fact that the most recent round of bond-buying seemed to have no inflationary impact. If anything, an observer of the data who had no preconceptions about monetary policy operations would conclude that QE3 was disinflationary. Alphaville writers have been exploring this possibility for years (though without firm conclusions). Let’s start by looking at the changes in actual inflation since the start of 2010.