Econ Comments & Analysis
Bloomberg | Bond Market to Fed: Your 4% Rate Forecast Is Way Too High
The bond market, unparalleled in predicting shifts in the U.S. economy over the decades, has a message: interest rates aren’t going to rise as high as even the Federal Reserve’s own forecast.
WSJ | Lagarde Says Central Banks May Have to Consider Financial Stability
Central bankers around the world may have to take financial stability into greater account, in addition to their usual duties of keeping inflation low while maintaining close cooperation with each other, International Monetary Fund managing director Christine Lagarde said Sunday.
Blogs
Market Watch | Fed should make exit decisions while things are quiet, former top staffer says
The Fed is not expected to make any move toward the exit until it is finished tapering its bond-buying program in the fourth quarter. This gives the Fed a few meetings of relative calm to explain its exit to the market, said Brian Sack, a former senior Fed officials, in an interview with the Wall Street Journal.
Library of Economics | The goal of monetary stimulus is to boost saving
Negative deposit rates" means that the banks will charge the customer for saving money and placing it in the bank. According to Keynesian theory (if there really is such a thing) government needs to spur "aggregate demand" in order to stimulate the economy to increased production. Keynes had no respect for savings...only spending.
