News
Bloomberg | Bank Revenues Surge on Trading Over What Fed Will Do
Diverging monetary policies are creating ideal conditions for banks to make money from trading currencies as Credit Suisse Group AG (CSGN) to Goldman Sachs Group Inc. say rising volatility is boosting earnings.
Econ Comments & Analysis
AEI | End the Fed as we know it
Of possible Fed candidates, only former Obama White House economist Christina Romer has explicitly endorsed N.G.D.P. targeting, though it’s believed Janet Yellen is also a fan. Larry Summers, on the other hand, seems a bit dubious of Fed quantitative easing programs and the potency of monetary policy when rates are superlow.
WSJ | The Near-Zero Interest Rate Trap
The conventional critique of the Federal Reserve's policies of near-zero interest rates and massive monetary expansion is that they risk kindling excess aggregate demand and high inflation. Yet inflation world-wide remains low, and some major trading partners of the United States, such as Japan and now China, are worried about deflation. China's Producer Price Index fell 2.7% in June, the 16th consecutive monthly decline.
NBER | Deflation Risk
We study the nature of deflation risk by extracting the objective distribution of inflation from the market prices of inflation swaps and options.
American | Big Bureaucracy: The CFPB Turns 2
The Consumer Financial Protection Bureau is everything that both proponents and critics thought it would be, and that’s not a good thing.
Heritage Foundation | Damaging Dodd-Frank is Making Things Worse
It’s been three years since the passage of Dodd-Frank, Washington’s response to the housing market collapse, the failure of major financial firms, and the resulting shock to the economy in 2008. Are Americans better off today because of it?
Blogs
Market Watch | New York Times endorses Yellen for Fed post
The race for the top Federal Reserve post between former Treasury Secretary Lawrence Summers and Fed Vice Chair Janet Yellen is looking more like a political campaign by the day.
