News
WSJ | Fed Move Echoes World-Wide
As the Federal Reserve begins a fresh effort to juice the economic recovery by pouring tens of billions of dollars into U.S. credit markets, ripples already are lapping on the shores of emerging markets.
Econ Comments & Analysis
Forbes | The Fed's Futile Effort To Bail Out Obamanomics
The fundamental problem is the Fed’s policy stance is internally incoherent. Stabilizing the value of the dollar would require the Fed to provide as much, or as little, money as the world demands at a stable price level. In other words, price stability requires the quantity of money to be the variable.
Real Clear Markets | Obamanomics Has Failed Dismally (And Ben Bernanke Can't Bail It Out)
About thirty years ago, Paul Volcker launched a monumental monetary effort to bring down inflation. As Fed chairman, he sold bonds, removed cash from the economy, and cared not one wit about rising interest rates. And it worked.
CNBC | Does Quantitative Easing Mainly Help the Rich?
Last month, the Bank of England issued a report that must have made Fed chairman Ben Bernanke squirm.
AEI | Bernanke goes to war armed with QE3
The Fed's move into QE3 marked a sharp change in tone from Chairman Ben Bernanke and the FOMC. While markets were pleased by the move, Bernanke's strategy may be something we soon come to regret.
Washington Times | Bernanke’s more-placebo policy
The problem with Washington is there’s no interest in any cure to our economic ills that has the side effect of angering powerful special interests. On the left, there’s no desire to trim government spending that public-sector unions depend upon.
Washington Post | Bernanke on the brink
We are reaching — or may already have passed — the practical limits of “economic stimulus.”
Blogs
Minyanville | The Absurdity of the Fed's Monetary Policy (and Some Tradeable Setups)
If you and I did what the Fed has been doing (and will do more of), we’d go to jail for forgery and passing counterfeit currency. Since the Fed does it, it’s called “monetary policy”. It won’t create any more jobs than the first two bouts of forg…err…monetary policy, but it will inflate everything.
Calculated Risk | Key Measures show slowing inflation in August
According to the Federal Reserve Bank of Cleveland, the median Consumer Price Index rose 0.2% (2.8% annualized rate) in August.
Economist | A victory, and a test
Yesterday, Tyler Cowen has declared, was Scott Sumner day. That strikes me as a fair honour to bestow. For it does appear that the Federal Reserve's statement yesterday represented a subtle but perceptible shift in monetary policy strategy—one that probably would not have occurred without Mr Sumner's efforts.
WSJ | Calling the Dollar the Loser From Fed Action May Be Premature
The Federal Reserve has announced quantitative easing as we have never seen it before. And the U.S. currency’s reaction to it could be just as unpredictable.
Free Banking | 2003 Redux, or, Why Market Monetarists Had Better Start Talking About the Dangers of QE3
In the title of a recent post Scott Sumner jokingly wonders whether, having been credited by the press for badgering Ben Bernanke's Fed until it at last cried "uncle!" by announcing QE3, he now needs to worry about going down in history as the guy who gave the U.S. its first episode of hyperinflation.
