Interest Rates Archive

CNBC’s John Carney on Krugman and MMT

>    >   (email exchange) >    >   On Sat, Nov 12, 2011 at 2:19 PM, Stephanie wrote: >    >   John Carney loving on us again Yes! Paul Krugman Goes MMT on Italy By John Carney November 11 (CNBC) — It seems pretty clear that the school of thought known as Modern Monetary Theory has made a ...Read More

News recap comments

The news flow from last week was so voluminous it was nearly impossible to process. For good measure I want to start today’s commentary with a simple recap of what happened. On the negative side – · Greece called a referendum and threw bailout plans up in the air taking Greek 2yrs ...Read More

President Obama entering the fray

More of the blind leading the blind. The one thing they all agree on, at great expense to global well being, is the budget deficits are all too large and the need for shared sacrifice and all that. No chance for anything constructive to come out of any of this. And these ...Read More

Fed’s Plosser comments

They see it all about managing expectations. So with the announcement they managed interest rate expectations a bit lower out to 2013. But now they are concerned they managed expectations about economic growth and employment lower as well, which they believe works to lower actual growth and employment. So now they are ...Read More

Basel 3 proposals

[Skip to the end] This comes down to the questions of: What are banks? What is the role of bank capital? What are the dynamics of capital ratios? 1. What are banks? Banks are public private partnerships presumably established and maintained for public purpose. The presumed public purpose is to maintain and ...Read More


[Skip to the end] The big concern is managing inflation expectation not realizing that inflation is not a function of inflation expectations: The Fed’s Exit Strategy By Ben Bernanke July 21 (WSJ) — The depth and breadth of the global recession has required a highly accommodative monetary policy. Since the onset of ...Read More

Richard Koo on fiscal policy and interest rates

[Skip to the end] Met Richard years ago. Seems he’s still confused on fiscal policy: Bond issues to fund capital injections will not lead to higher interest rates Right! The CB sets rates. Too bad he didn’t stop here rather than try to explain the process. Japan’s second round of capital injections ...Read More

2008-09-16 JN Highlights

[Skip to the end] Highlights: Aug Consumer Sentiment Hits Record Low For 3rd Month Govt Panel To Call For Cutting Corporate Tax To 30% By FY15 Ota Reelected As New Komeito Leader For Another 2 Years Extra Budget To Total 1.81tn Yen, Govt Eyes 400bn Yen Bonds Lehman Failure Not To Mar ...Read More

AS: Fed moves

[Skip to the end] I’ve been recommending the following for the Fed for quite a while (see Proposals for the Fed): Lower the discount rate the Fed Funds rate and: Accept a pledge of any bank legal collateral from any member bank. Impose no restriction on quantity borrowed. Impose no restriction on ...Read More

2008-08-13 UK News Highlights

[Skip to the end] Highlights: BoE Cuts Growth Forecasts, Jobless Climbs U.K. Unemployment Rose the Most Since 1992 in July Surge in credit card debt charge-offs U.K. Homebuilders Fall as Unemployment Rise May Worsen Slump     Article snip: BoE Cuts Growth Forecasts, Jobless Climbs (Bloomberg) The BoE cut its forecast for ...Read More