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Lessons from Japan’s Economic Experience
Click here for a printer-friendly version of this articleLast week, the Wall Street Journal featured a long article about how the Federal Reserve is attempting to apply the lessons learned from Japan’s...
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Failed Models and the Real Costs of QE2
Click here for a printer-friendly version of this articleLast spring, in an effort to support the banks and attempt to drive liquidity to the mortgage market, the Fed chose to take on fiscal policy...
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Quantitative Easing II
The brouhaha over quantitative easing II (QE II) continues. The Fed plans to purchase over $600 billion of long-dated Treasury securities over a period ending in June 2011 — a policy known as QE II. As...
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A Plan to Help Avoid the Next Crisis: Market-Based Risk Indicators
The Dodd-Frank bill failed to address the key issues of prudential regulation that sparked the crisis. Instead, the FDIC was granted unlimited bailout capacity moving forward. Policymakers need to...
View ArticleUnhappy Birthday for Dodd-Frank
Yesterday was the first anniversary of enactment of the Dodd-Frank financial regulation law. Here’s a round-up of retrospectives on the first year of implementation.David Indiviglio at The Atlantic...
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Comparing Recoveries
The Wall Street Journal repackaged a chart from the International Monetary Fund comparing the recoveries from US recessions over the years.There are several interesting findings. It’s unsurprising that...
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Preparing for the Coming Financial Crisis
The slow-motion train wreck in Europe is highlighting how financial risks haven’t disappeared from the economy. Several European sovereigns like Greece, Italy, Spain, and Portugal face a high...
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This Time Is Different, Again
The terrible economic news and market conditions of the past week have led many to think the country is in for a relapse into a crisis recession. The S&P’s downgrade of the country’s credit rating...
View ArticleWho Pays? Bondholders or Taxpayers
The ongoing worries of another financial crisis, perhaps induced by a European sovereign default, center on the role of bank solvency. If the financial system experiences another systemic default,...
View ArticleBank Capital Requirement Reform: Long-Term Size and Structure, the...
There is general agreement that the minimum bank capital ratio requirements (hereafter MCRR) set by regulators in the US and elsewhere were inadequate leading up to the financial crisis, and that this...
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Remembering Anna Schwartz
On Thursday, monetary policy legend Anna Schwartz passed away at the age of 96. Given the sad news, we’d like to highlight some of her work.Schwartz was a long time member of the Shadow Open Market...
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Defining the Baseline Down
Click here for a printer-friendly version of this article.When defending the Administration’s economic record, the President and his supporters try to deflect blame for the slow and halting nature of...
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The Hysteric Response to the Reinhart-Rogoff Row
Last week, careful research by UMass-Amherst professors found that the seminal paper by Ken Rogoff and Carmen Reinhart contained a data error that biased their conclusion that debt-to-GDP ratios in...
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Does the Housing Boom Signal the End of the Slow Recovery?
The recovery from the financial crisis of 2007‐2008 has been proceeding for 16 quarters, slower than every preceding recession with a financial crisis in U.S. history. Many have argued that the...
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2014 Might Be Better Than You Think!
As 2013 draws to a close, we continue to see a gradual broadening and strengthening of the U.S. economy’s recovery from the financial crisis and severe recession that began more than five years ago....
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