If the Federal Reserve Board has used all of its policy tools during the current expansion, what happens when there’s a recession? That’s a question worth asking, even as the…
Place Your Bets
“What mighty Contests rise from trivial Things … ” Alexander Pope, The Rape of the Lock …
President Underwood Goes Keynesian
In the latest season of “House of Cards,” President Frank Underwood stakes his political future on a $500 billion program called America Works, which will allegedly create 10 million jobs…
Another Year of ZIRP?
When the economy recovers, interest rates will go up, right? That’s been the Federal Reserve Board’s line for years now. Yet as the Fed gushes about an allegedly booming economy,…
Do You Believe in Santa Claus? You May Be A Keynesian.
The Christmas season is an appropriate time to reflect on Keynesian economics, given this: believing in Keynesian economics is a lot like believing in Santa Claus. Most Americans grow up…
Land of the Setting Sun
Let’s pretend that the United States economy is a football team. The coach calls the play. The running back runs right up the middle and is thrown for a loss. …
Less than “Less than Zero”
In June, the ECB lowered the interest rate on bank deposits, including reserve holdings in excess of the minimum reserve requirements, from zero to -0.10%. This week, surprising just about…
Wishful Thinking Does Not Create Economic Recovery
This was going to be the year. Remember the predictions of 3% economic growth? More recently, the consensus was 1.2% growth for the most recent quarter. It turns out, though,…