Econ Comments & Analysis
Market Watch | Five surprises that could derail higher interest rates
Even if they put up giant signs on the side of the road, the central banks of the U.K. and the U.S. could hardly make their intentions any clearer. At some point in the next six to nine months, interest rates are going to start rising.
Real Clear Markets | Dodd-Frank Is Not Living Up To Its Promises
This month marks four years since the passage of Dodd-Frank. Slightly more than half of the Dodd-Frank rules are final, according to law firm Davis Polk. This rulemaking pace is not as rapid as many would like. But enough regulations are in place to indicate that Dodd-Frank is not living up to the promises embedded in its official title, "The Wall Street Reform and Consumer Protection Act." Meaningful Wall Street reform and consumer protection requires more creative thinking than Dodd-Frank's tried and tired approach to financial regulation.
NBER | Effects of Unconventional Monetary Policy on Financial Institutions
Monetary policy affects the real economy in part through its effects on financial institutions. High frequency event studies show the introduction of unconventional monetary policy in the winter of 2008-09 had a strong, beneficial impact on banks and especially on life insurance companies.
AEI | A reality check for the Federal Reserve
One has to applaud the Bank for International Settlements (BIS), the Basel, Switzerland-based bank for the world's central banks, for providing the Federal Reserve with a reality check as to the state of U.S. and global financial markets. More important still, one has to salute the BIS for not pulling punches in reminding the Fed as to the potentially high cost of an overly easy monetary policy, especially if it is maintained for too long.
Heritage Foundation | The Centennial Monetary Commission Act of 2013: A Second Look at the Fed and the 2008 Financial Crisis
There is still a great deal of debate over the Federal Reserve’s role in the 2008 financial crisis. Critics have blamed the Fed’s policies for everything from causing the crisis to worsening it, as well as prolonging the economic recovery after the financial markets stabilized. This debate has not been settled, but Congress has already expanded the Fed’s authority, providing yet another avenue for criticism.
Blogs
Market Watch | Yellen to address financial stability as concerns grow about impact from Fed policy
Federal Reserve Chairwoman Janet Yellen is set to discuss financial stability on Wednesday as observers worry that the Fed’s exit from its easy monetary policy stance will roil markets.
WSJ | Global Central Banking in 2014, A Second Quarter Update for 24 Economies
Five years after the global recession of 2009, economic growth remains troublingly weak and inflation uncomfortably low in many developed economies. Several emerging-market economies are expanding more slowly than in the past while inflation remains high. And housing prices appear frothy in some countries. Many of the world’s central banks held policy steady in the second quarter, but some made moves or indicated they are preparing to act in the months ahead.
