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Central banks lack both the power and the knowledge needed to deliver stable growth.January 3, 2013
Canadian central bank chief Mark Carney, who will become governor of the Bank of England in June, caused a stir on both sides of the Atlantic when he appeared to endorse a monetary policy based on nominal gross domestic product (NGDP) targeting—a new monetary policy framework. A fresh approach to the current policy, which has manifestly failed to guarantee macroeconomic stability, is certainly long overdue. But could NGDP targeting have really prevented the financial meltdown and the ensuing recession as its advocates claim?
And why the Occupy movement should be up in armsSeptember 17, 2012
The decision is in: Unlimited quantitative easing. That was the announcement from the Federal Open Market Committee this afternoon, launching a third round of purchases of securities in a bid to boost the economy and reduce unemployment. This time, Federal Reserve Chairman Ben Bernanke and crew are pledging to buy $40 billion per month until the economy improves. The Fed's policy committee also extended its zero-interest rate policy until “at least mid-2015.” If QE3 lasts that long, the Feds will be printing at least another $800 billion to buy mortgage-backed securities.
From a long-term perspective, the Federal Reserve is doing more harm than good right now to economic stabilityJuly 18, 2012
Today’s monetary policy debates sound increasingly like the process of trying to get a picture on the wall centered and straight: “A little more to the left.” “No, that’s not helping, more to the left.” “Yes, that is helping.” “No, that is making it worse, back to the right.” Depending on your perspective, the picture is either crooked or straight. And when a host of people is noisily debating whether the frame should be tilted left or right, the sound can become downright unhelpful. The same goes for monetary policy.
Rumors are flying everywhere that the Fed is going to ease policy again after its meetings today and tomorrow. The Financial Times declared yesterday that "the doves are ready to act." And a report in Forbes suggests that more Fed easing is likely to come sooner rather than later, in the form of an extension of the Feds Operation Twist program. JP Morgan Chase and Barclays are also both expecting the FOMC will extend the $400 billion dollar (to this point) bond swap program known as Operation Twist.
Assuming the desirability of a recession rate, speed of economic growth, and level of equality all divorced from their causes is not a leap of logic we should lightly undertake.
We've noted before that income inequality is not inherently a bad thing—what matters is the source of the inequality. In last week's WSJ, hedge fund founder Mark Spitznagel points out one bad source creating artificial income disparagement... the Fed.
View Resources by Type
- The Bank of England’s Flawed Approach to Monetary Policy
Central banks lack both the power and the knowledge needed to deliver stable growth.
January 3, 2013
- How Quantitative Easing Helps the Rich and Soaks the Rest of Us
And why the Occupy movement should be up in arms
September 17, 2012
- The Fed's Harmful Monetary Policy
From a long-term perspective, the Federal Reserve is doing more harm than good right now to economic stability
July 18, 2012
- Tidequistadors In Search of Sound Money
A laundry soap has developed as much legitimacy as the dollar to serve as currency, what's going on?
April 9, 2012
- Americans Don't Benefit From Fed Inflated Asset Prices
The Wealth Demographics of Misdirected Monetary Policy
March 9, 2012
- The Euro Isn't the Problem, but Europe Is
What actually ails Europe is bloated government bureaucracy, over-regulation, and unfunded pension and healthcare obligations
March 5, 2012
- What Has Ben Bernanke Done For You Lately?
Why the Federal Reserve’s Policies Aren’t Helping a Majority of Americans
February 8, 2012
- Trillion Dollar Bailouts Equal Crony Capitalism
The Federal Reserve was supposed to be a lender of last resort, not an ATM for Wall Street.
December 12, 2011
- The Fed's QE Makes Life Difficult
How quantitative easing is helping investors but hurting households
James Groth and Anthony Randazzo
August 25, 2011
- How Long Will It Take Keynes to Die?
You won't find out by reading America's newspaper of record.
August 17, 2011
- The Failure of Quantitative Easing
A perfect storm brews on the economic horizon while the Fed looks the other way.
Anthony Randazzo and James Groth
July 15, 2011
- A New Blueprint for Recovery
AOTC: What Ails the Economy Today and What to Do About Fixing Tomorrow
July 8, 2011
- Stimulus to Nowhere
The failure of Obama's economic agenda
June 30, 2011
- Why Not Let Prices and Wages Fall?
Bernanke's sophisticated surgical tools keep making the patient worse
June 17, 2011
- Ron Paul’s Radical Vision
The libertarian Republican warns of impending disaster, reaches out to the left, and prepares for a presidential campaign.
June 9, 2011
- Is Inflation Making a Comeback?
The Federal Reserve isn't likely to repeat past mistakes.
May 12, 2011
- Ron Paul Explores the 2012 Presidential Race
An interview with the libertarian congressman on the cusp of another GOP presidential run
April 28, 2011
- Stop Crying and Start Cutting
What's wrong with a government shutdown?
March 2, 2011
- Will the Republicans Cut Government This Time?
It's time for the GOP to walk the walk.
January 20, 2011
- Savers Hate America
Ben Bernanke wants you to be a consumption unit. Why are you ignoring him?
January 19, 2011
- Same as the Old Boss?
Don't count on the GOP to shrink the size of government
January 13, 2011
- Penny Reign
America’s least valuable coin endures.
December 24, 2010
- A Leaner Leviathan
Unfortunately, balancing the federal budget won't require radical change.
December 8, 2010
- Story Time With David Brooks and Paul Ryan
The wonky legislator and the cerebral columnist battle over the big-government narrative.
December 3, 2010
- Did the Midterms Matter?
A cynical (or realistic) take on the change in D.C. power.
November 29, 2010
- It's About Time We Politicized the Fed
Monetary policy deserves public scrutiny.
November 24, 2010
- Going Broke by Fractions of a Percent
Ben Bernanke should stop paying interest on reserves
November 18, 2010
- Ben Bernanke’s Made-Up Money
With its new round of quantitative easing, the Fed enters uncharted territory.
November 11, 2010
- Are We All Friedmanites Now?
The Fed is using Milton Friedman’s theories to justify gigantic interventions in the world market.
October 28, 2010
- Freer Is Better
Measuring economic liberty around the world.
October 14, 2010
- It Can Happen Here
Government really can be cut: case studies from Canada, New Zealand, and the United States
David Henderson, Arnold Kling and Maurice McTigue
October 12, 2010
- How to Slash the State
14 ways to dismantle a monstrous government, one program at a time
October 5, 2010
- Austerity Agonistes
Why left-wing economists’ warnings against austerity programs are wrong
Veronique de Rugy
September 20, 2010
- A Memo to Alan Greenspan
Why the former Fed chairman should keep quiet
August 12, 2010
- Too Much Confidence
Bernanke Wants Us to Trust His Poor Record
Anthony Randazzo and Marius Gustavson
June 30, 2010
- A Growing Concern: Bank Taxers Without Borders
A global bank tax would be bad no matter how you slice it
March 24, 2010
Experts: Monetary Policy and Federal Reserve
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- Brian Doherty
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- Nick Gillespie
Editor in Chief, Reason.com and Reason TV
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Managing Editor, Reason
- Adrian Moore
Vice President, Policy
- Julian Morris
Vice President, Research
- Anthony Randazzo
Director of Economic Research
- Samuel Staley
RSS Feeds: Monetary Policy and Federal Reserve
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