Econ Comments & Analysis
WSJ | The High Cost of the Fed's Cheap Money
During the past three years, the Federal Reserve has tripled the size of its balance sheet—in effect printing $2 trillion—something it had never done in its nearly 100-year history.
Forbes | The Fed and The Power To Redirect and Redistribute Wealth
A butterfly flapping its wings in a rain forest is nothing compared to a central banker flapping his lips. Federal Reserve Chairman Ben Bernanke recently told a congressional committee that, although he wouldn’t rule out another round of quantitative easing, he did not foresee another round in the near future.
Real Clear Markets | Bernanke's First Step Is Admitting There's a Problem
Economists are very fond of speaking about trade-offs, and even for monetary policy these kinds of things exist, so it makes sense to inquire about what might have been lost in the quest for so modest a recovery.
Forbes | Oil Continues to Rise Because the Dollar Continues to Fall
The primary reason that crude oil today – Brent is at $123 per barrel – is higher than its prior average around $20 in the 1990s, or the $3.00 of the 1960s, is that the dollar has lost value over that time.
NY Times | 0.2% Interest? You Bet We’ll Complain
That was the message delivered last Thursday to Americans who today make almost nothing on the savings in their bank accounts.
Forbes | The Price of Low Interest Rates? Weaker Economic Recoveries
The great Austrian School economist Friedrich Hayek had an important insight in Prices and Production which should cause us to be on the lookout for some severe economic pain
Blogs
WSJ | Prices Cut Into Household Incomes
Rising prices took a toll on Americans’ incomes as the year began, halting a four-month streak of gains and renewing concerns about the consumer’s resilience amid higher gas prices.
Reason Foundation | The Victims of Cheap Money Bernanke
A few weeks ago we had a blog post highlighting some of the ways that the Fed’s ZIRP and QE policies are violating Bernanke’s maxim for Congress of “first do no harm.” Jeffrey Snider’s RCM column from two weeks ago (you can tell I’m a bit backed up on my to-read pile) lays out the argument much more eloquently
