News
FOX Business | Good Inflation, Bad Inflation: The Fed's Dilemma
Average Americans who shop at the grocery store, fill up their tanks at the gas pump and pay monthly utility bills have to be shaking their heads in confusion amid the growing debate over inflation.
Econ Comments & Analysis
WSJ | The Asset-Rich, Income-Poor Economy
Economist Richard Koo diagnosed Japan's crash in the early 1990s and subsequent two decades of economic malaise as a "balance-sheet recession." That conclusion wasn't lost on the Federal Reserve during the financial crisis of 2008-09. The Fed engineered an emergency response to craft what can best be described as a balance-sheet recovery.
NY Times | Federal Reserve’s Bond-Buying Fades, but Stimulus Doesn’t End There
The Federal Reserve is poised to keep purchasing large volumes of mortgage bonds, and potentially Treasury securities too, even after the likely conclusion of its prominent bond-buying program later this year.
Blogs
WSJ | Grand Central: Did The Fed Misdiagnose The Expansion, And Kill It?
Harvard University professor Lawrence Summers has argued that the U.S. has been in a period of secular stagnation – the second, supply-side scenario laid out by Greg at The Economist. Mr. Summers dates this back to long before the 2008-2009 recession. A look at the supply side of the economy – the inputs of labor and productivity – backs up this view that the gears of the economy were downshifting long before the recession.
WSJ | St. Louis Fed Financial Stress Gauge Hits a Record Low
According to a weekly index produced by the Federal Reserve Bank of St. Louis, market stress hit a record low reading in the week ending on June 13. The bank said its Financial Stress Index came in at -1.303 for the week, after standing at -1.264 the prior week.
