Monday, September 8, 2014


Econ Comments & Analysis                                                                                            
Forbes | As Jobs Stagnate, Janet Yellen Plays Economic Pinball
Federal Reserve Chair Janet Yellen appears to view the U.S. economy as a pinball game, where the Fed’s job is to keep the ball caroming back and forth between inflation and unemployment, all the while hoping that the whole thing doesn’t just go “TILT,” as it did in late 2008.
The Washington Times | EDITORIAL: The ‘monetary-easing’ money trap
The plates to print money across the world ought to come with a warning label.
Wall Street Journal | The Fed Is Looking Like a Sovereign Wealth Fund
The Federal Reserve recently made clear it is planning to maintain its enormous balance sheet—roughly $4.5 trillion in Treasurys and mortgage-backed securities—for many years, while keeping interest rates near zero at least into 2015.
Bloomberg | Fed Seeks to Calm Congressional Demand for More Oversight
Federal Reserve Chair Janet Yellen has tried to repair damaged relations with Congress during her first seven months in office. The fix-up isn’t going very well.
AEI | Why did economists believe in the 'zero bound' for interest rates?
As shown by these recent quotes from The Wall Street Journal, we are getting used to the idea that interest rates can be negative. So why did so many economists assert confidently for years that nominal interest rates could not go below zero– that there was a “zero bound,” as they said?