Money and Finance
- The Latest From Frank Martin...
Found via Santangel's Review. Links to: Cyclical or Secular? That is the Question The Rational Allocation of Capital in an Irrational World ……………….. Related links: Martin Capital Management: 2012 Annual Report Borio and White - Whither...
- Gr-neam Reflections: 03/01/2013 - Better Late Than Never
Jeremy Stein of the Federal Reserve Board of Governors recently spoke on the subject of unintended consequences of unconventional monetary policy. The Fed thus begins to admit that the observations of capital markets observers have a point. ...
- John Mauldin: Qe Infinity: Unintended Consequences
There is an intense debate going on in the first-class cabin of Economics Airlines about the direction in which our plane should be pointed. And while those of us back in the cheap seats don't get to help decide, knowing where we will land is of intense...
- John Mauldin: Unintended Consequences
Let me introduce Mauldin's Rule of Thumb Concerning Unintended Consequences: For every government law hurriedly passed in response to a current or recent crisis, there will be two or more unintended consequences, which will have equal or greater negative...
- No Shortcuts To Greatness - By Vitaliy Katsenelson
Nothing defined Alan Greenspan’s tenure as chairman of the Federal Reserve Bank more than his wholehearted embrace of capitalism. With early roots in his 30-year association with the novelist and philosopher Ayn Rand, that faith grew into an unconstrained...
Money and Finance
Ultra Easy Monetary Policy and the Law of Unintended Consequences – By William R. White
Abstract
In this paper, an attempt is made to evaluate the desirability of ultra easy monetary policy by weighing up the balance of the desirable short run effects and the undesirable longer run effects – the unintended consequences. The conclusion is that there are limits to what central banks can do. One reason for believing this is that monetary stimulus, operating through traditional (“flow”) channels, might now be less effective in stimulating aggregate demand than previously. Further, cumulative (“stock”) effects provide negative feedback mechanisms that over time also weaken both supply and demand. It is also the case that ultra easy monetary policies can eventually threaten the health of financial institutions and the functioning of financial markets, threaten the “independence” of central banks, and can encourage imprudent behavior on the part of governments. None of these unintended consequences is desirable. Since monetary policy is not “a free lunch”, governments must therefore use much more vigorously the policy levers they still control to support strong, sustainable and balanced growth at the global level.
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THE MAN NOBODY WANTED TO HEAR
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- The Latest From Frank Martin...
Found via Santangel's Review. Links to: Cyclical or Secular? That is the Question The Rational Allocation of Capital in an Irrational World ……………….. Related links: Martin Capital Management: 2012 Annual Report Borio and White - Whither...
- Gr-neam Reflections: 03/01/2013 - Better Late Than Never
Jeremy Stein of the Federal Reserve Board of Governors recently spoke on the subject of unintended consequences of unconventional monetary policy. The Fed thus begins to admit that the observations of capital markets observers have a point. ...
- John Mauldin: Qe Infinity: Unintended Consequences
There is an intense debate going on in the first-class cabin of Economics Airlines about the direction in which our plane should be pointed. And while those of us back in the cheap seats don't get to help decide, knowing where we will land is of intense...
- John Mauldin: Unintended Consequences
Let me introduce Mauldin's Rule of Thumb Concerning Unintended Consequences: For every government law hurriedly passed in response to a current or recent crisis, there will be two or more unintended consequences, which will have equal or greater negative...
- No Shortcuts To Greatness - By Vitaliy Katsenelson
Nothing defined Alan Greenspan’s tenure as chairman of the Federal Reserve Bank more than his wholehearted embrace of capitalism. With early roots in his 30-year association with the novelist and philosopher Ayn Rand, that faith grew into an unconstrained...