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Friday, May 23, 2014

Monetary

Econ Comments & Analysis                                                                                            
Real Clear Markets | Interest Rate Manipulation Comes Back to Haunt Its Most Ardent Supporters
To bring this back toward the generalities, it appears to me, and many others, that the credit markets are much less stable now than if QE had never been proposed.
NBER | Monetary Policy and Real Borrowing Costs at the Zero Lower Bound
The efficacy of unconventional policy in lowering real borrowing costs is comparable to that of conventional policy, in that it implies a complete pass-through of policy-induced movements in Treasury yields to comparable-maturity private yields.

Blogs                                                                                                                             
WSJ: Real Time Economics | Grand Central: How High Will Fed Push Rates?
The April survey, released earlier this week, shows bond dealers expected the fed funds rate to average just 2.75% for the coming decade.
WSJ: Real Time Economics | In Face-off, Fed’s Keeping the IMF Out of Its Currency Swap Domain
Several advanced-economy central banks, including the Fed, have successfully stymied efforts by some emerging markets to create a short-term cash line at the fund to help shore up economies against market shocks.