There is little doubt the Fed’s easy money policy, and especially the deliberate QE of buying long term instruments, has resulted in speculative flows investing in those assets. As we related last week, the Fed’s discussion of tapering has resulted in immense turmoil, as speculators are wondering if capital needs to be redeployed away from […]
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Many critics of Austrian economic theory on the causes of business cycles suggest that the lack of significant CPI-based inflation shows the Austrians are all wrong. Yet, as I have argued earlier, CPI inflation is NOT what Austrians are concerned with. Rather the central banks artificially lowering interest rates leads to malinvestment and a distortion […]
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A few months ago the big revelation to gold bugs was Germany wanted its gold back from the Federal Reserve. What’s the world coming to when central banks don’t trust each other? Further, with central banks net buyers of gold for the last few years, something seems afoot in the global currency markets. In perhaps […]
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CNBC reports today that the Federal Reserve is increasingly considering income inequality as a consideration for monetary policy. The basic idea seems to be that monetary policy ought to be kept easy as long as those in the lower income groups are unable to gain jobs. As CNBC reports Some on the FOMC, they said, […]
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Janet Yellen, the current Vice-Chair of the Federal Reserve is rumored to be next in line to replace “Helicopter” Ben Bernanke. This is troubling because, as a committed Keynesian, she is a big fan of inflation as a way to lesson the pain of unemployment. Indeed, she is–as many others are–convinced that inflation causes small […]
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Bernanke–the best inflation fighter ever?
28 Feb 2013
That’s at least what Mr. Bernanke suggests when challenged by Senator Corker during congressional testimony on Tuesday: Perhaps its true, IF the measure of inflation we should be concerned about is the rate of change of CPI. But there are at least two ways to criticize this way of thinking, in addition to the serious […]
Bert Wheeler
Jeff Haymond
Marc Clauson
Mark Caleb Smith
Tom Mach