News
Bloomberg | FOMC Straying on Price Target, Former Fed Officials Say
The Federal Reserve appears to be backing away from its commitment to keep inflation at 2 percent with its plan to buy mortgage-backed securities until employment improves, two former Fed officials said.
Econ Comments & Analysis
Washington Post | The Fed’s mission creep
Before the Fed was created 99 years ago, the U.S. economy was in recession 48 percent of the time; since 1913, it has been in recession only about 20 percent of the time. The Fed has done much good. It cannot, however, do every good thing, although Congress now seems to think it should.
Blogs
Think Markets | “Modern Market” Monetarism?
Douglas Irwin, a very fine economist at Dartmouth College, has a very puzzling opinion piece in yesterday’s Financial Times. The root of the puzzle is that Irwin seems to accept what I consider the naïve monetarist view, yet calling it by a new name “market monetarism,” that the effectiveness of monetary policy largely revolves around portfolio adjustment effects that are induced by an increase in real balances.
