bawerk.net: Tough Choices: Peg or Banking Crisis?
byDuring the reign of the mighty petro-dollar standard, it was necessary for major oil exporters to recycle their dollar holdings back into the dollar-based…
Economics
Central Bankers Claim: Things Are Better than You Think
byIn our time, the greatest source of money chaos is now the global 2%-inflation standard. Deflation-phobic central bankers, led by the FOMC at the…
Benn Steil: Is the Fed Losing Credibility? A Response to Kocherlakota
byFormer 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)
byTen 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
byThere 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
bySource: 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
bySource: 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
byFollowing this week’s FOMC Minutes shows, which violently repriced June rate hike odds from 4% to 30% and July from 20% to 50%, the…
The levee gonna break – Debt, demographics, productivity and financialization
byIn a March paper from the Kansas City Federal Reserve Bank – The Lasting Damage from the Financial Crisis to U.S. Productivity – the…
Raghuram Rajan: “The Ammo Is Almost Gone”
bySource: 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…