Should The Fed Regulate Asset Prices?
The idea might seem crazy at first, but it follows logically from a model in which beliefs about future asset prices (‘animal spirits’) have real effects on output and employment. […]
Fed Critics Are Wrong
People have blamed the Fed for the rise in US inequality, but this is hard to square with the facts. Fed criticism mostly comes from people subscribing to hard money […]
Will The Expansion End With A Fizzle Or A Bang?
The Fed could very well raise rates because they fear the prospect of higher inflation and imploding asset bubbles bringing down the economy. So if they act, the economy goes […]
Could The Fed End The Stock Rally?
The Fed could trigger a recession and a considerable stock market selloff if it tightens too much. We doubt there is much need for that given the fact that inflation […]
Is The Fed Is Behind The Wrong Curve?
Debt to GDP ratios have kept on rising since the financial crisis in most of the world, in some parts at alarming rates. While we wholeheartedly agree with the BIS […]
The Great Unwinding
The Fed (and other central banks) has amassed a great amount of assets, bloating its balance sheet. The Fed has started signaling to the markets that it is considering starting […]