Tag Archives: monetary policy
Planning for Future Rate Hikes: What Can History Tell Us that the Fed Won’t?
It stands to reason that when the Fed eventually lifts interest rates, we’ll see the usual effects. After a sustained rise in rates, you can safely bet on: Fixed investment and business earnings dropping sharply GDP growth following investment and … Continue reading
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Tagged corporate earnings, escape velocity, fixed investment, FOMC, GDP growth, house prices, James Bullard, monetary policy, policy normalization, rate hikes, stock prices, This Time is Different, unemployment
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Technical Notes for ‘3 Underappreciated Indicators’
This is an appendix for our earlier post, “3 Underappreciated Indicators to Guide You through a Debt-Saturated Economy.” We’ll share a few extra charts and describe our use of the Fed’s flow of funds data, in Q&A format.
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Tagged bank-created money, credit market instruments, government deficits, monetary policy, monetary targeting, money supply aggregates, money supply growth, money supply targeting, net bank lending, non-money savings, personal savings rates, personal sector
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Why We Shouldn’t Trust the Fed’s Inflation Target
Awhile back, I thought it might be interesting to create one of those island economy stories to demonstrate a problem with the Fed’s policy framework. I finally got around to it over the past week, after reading an article on the … Continue reading
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Tagged confirmation bias, David Stockman, Federal Reserve, heuristics and biases, inflation target, monetary policy, rational agents, stabilization policies, The Great Deformation, William McChesney Martin
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