Benn Steil: Is the Fed Losing Credibility? A Response to Kocherlakota
Former Minneapolis Fed president Narayana Kocherlakota says that the Fed has a credibility problem. Investors, he argues, have lost faith that the Fed will…
It’s Not Stupidity, It Is Apathy (For Now)
Ten days ago, it was reported that the Bank of Japan for the first time set aside reserves against expected losses should its massive…
ECB Policy-Failure On Display: European Businesses Aren’t Planning To Invest
There once was a time (at least in banished Austrian economic circles) when low market interest rates signaled to entrepreneurs a positive environment in…
Academic Skulduggery – How Ivory Tower Hubris Wrecks your Life
Source: http://bawerk.net/2016/05/23/academic-skullduggery-how-ivory-tower-hubris-wrecks-your-life/ In the 1970s economists started to incorporate rational expectations into their models and not long after the seminal Kydand & Prescott (1977) article…
Fed Suppression, Long Term Economic Repression
Source: http://bawerk.net/2016/05/19/fed-suppression-long-term-economic-repression/ The Federal Reserve really wants to raise rates, but they do not dare as the consequence of interrupting an unprecedented level of capital…
Why Deutsche Bank Thinks A Fed Rate Hike Would Unleash A Stock Market Crash
Following this week’s FOMC Minutes shows, which violently repriced June rate hike odds from 4% to 30% and July from 20% to 50%, the…
Raghuram Rajan: “The Ammo Is Almost Gone”
Source: http://www.zerohedge.com/news/2016-05-16/mutiny-among-magic-people-india-central-banker-admits-ammo-almost-gone The self-described “magic people” who “give to the markets” are facing a mutiny this morning as Raghuram Rajan, the head of the Indian…
Free Markets Do Not Need Negative Interest Rates
Martin Wolf, associate editor and chief economics commentator at the Financial Times, seems to have forgotten the nature of interest rates and their coordinating…
Mises.org: Keynes’s Critique of Econometrics Is Surprisingly Good
In a recent article we had a brief look at Ragnar Frisch’s (1895–1973) vision of econometric model building. As mentioned, Frisch was the first…
Bawerk.net: Hillary Will be the Least of Your Worries – America has Economic Diarrhea
According to the National Bureau of Economic Research (NBER), the official recession arbiter, the US economy is currently at its fourth longest expansion in…