News
Bloomberg | Coeure Says No Doubt ECB Loose Monetary Policy Exit Distant
European Central Bank Executive Board member Benoit Coeure said loose monetary policy and non-standard measures will remain as long as needed, as the euro area struggles to emerge from its longest-ever recession.
Blogs
Economist | Whose low rates are these?
A long debate has been raging over the nature of low long-term interest rates. In one camp, there are those who say that low rates are mostly a result of the quantitative easing pursued by rich-world central banks. Purchases of assets from banks using newly created money artificially raise bond prices, in this view, thereby holding down interest rates. In the other camp are those who argue that low rates are mostly a result of broader economic forces.
Telegraph | The Bernanke Fed is playing with deflationary fire
I hope the Fed knows what it is doing. It has chosen to tighten monetary policy even though core PCE inflation is actually lower right now than it was when the Fed previously thought it dangerous enough to launch further QE. America is one shock away from a slide into outright deflation, and the eurozone is half a shock away.
