Low Interest Rates Subsidize Wealthy Households
byBy Hal Snarr When the economy begins to sink into recession, politicians, mainstream economists, policy wonks, and the Federal Reserve begin beating the economic stimulus…
Interest Rates
The upcoming increase in interest rates
byLast week, both Janet Yellen of the Fed and Mark Carney of the Bank of England prepared financial markets for interest rate increases. The…
Fed’s official expressed concern of a possible low natural rate
byIt is widely accepted that by means of suitable monetary policies the US central bank can navigate the economy towards a growth path of…
Real vs. Nominal Interest Rates
byWhat is the real interest rate? It is the nominal rate minus the inflation rate. This is a problematic idea. Let’s drill deeper into…
Where Negative Interest Rates Will Lead Us
byDespite zero-interest-rate-policy (ZIRP) and multiple quantitative easing programs — whereby the central bank buys large quantities of assets while leaving interest rates at practically…
Haldane the Omniscient
byI read this article by Andy Haldane. http://www.theguardian.com/business/2015/sep/18/interest-rates-rise-bank-of-england-chief-economist-andy-haldane I value certain things now more than I do in the future. I am…
The essence of interest rate determination
byAccording to mainstream thinking the Central Bank is the key factor in determining interest rates. By setting short-term interest rates the Central Bank, it…
Interest – Inflation = #REF
byI have to admit that I derive some pleasure in taking on hoary old myths. For example, some economists assert that the interest rate…
Ben Bernanke Now Blogs
byBen Bernanke presided over the Federal Reserve for two terms, from 2006 through 2014. A year and half into his first term, he began…
The Swiss Franc Will Collapse
byI have worked to keep this piece readable, and as brief as possible. My grave diagnosis demands the evidence and reasoning to support it….