Opinion
Fiddling At The Fed
So after a recession caused by excessive borrowing, the Inflate Now faction wants to give the government more tools to promote future excessive borrowing.
Opinion
Watch out for falling prices
Reading the latest economic news recalls the popular box store warning "Watch out for falling prices!" We appear to be entering a period of generally falling prices in our economy, an overall deflation. Falling prices aren't always a good thing, however, and this time, analysts are concerned about negative economy-wide effects. Should the Fed step in?
Opinion
Federal Reserve Part II
The cumulative effects of the play-off between political advantage and economic necessity is the theme of Hayek's [1941] critique of Keynesianism. It has been described as having 'a tiger by the tail.' The value of what the Federal Reserve tries to do, and how it carries out its mission, must be judged against the expected long-run consequences of credit expansion and not just a short term easing of interest rates.
Opinion
Titanic, or Tiger by the Tail?
Housing and financial markets have collectively been holding their breath, awaiting decisions from the Federal Reserve on possible monetary policy changes. And the results are in. The Federal Open Market Committee, the Fed's monetary policy arm, voted to reduce two key short-term interest rates at its most recent meeting. Is this a solution to the subprime market woes, and the swings and plunges that market prices have been taking alongside them?
Opinion
Transparency Or Tradeoff?
With the holidays upon us, the business community is anticipating sales and employment figures like kids awaiting Santa. It’s a good time to consider, then, what economists mean when they talk about the economy "heating up" or "cooling off," and why these issues are the special concern of Federal Reserve officials.
Opinion
Like Three Bears, This Chair Wants No Surprises
When outgoing Chair Alan Greenspan's last term ends, after 18-plus years, the Fed will not only experience new leadership, but a shift in emphasis. Will the change make much difference? Incoming Fed Chair Ben Bernanke favors a policy of maintaining low inflation rates. Seems subtle, but it's a real difference.
