Tag Archives: interest rates
Salting the Economy to Death
One popular delusion that won’t seem to go away is the notion that policy makers can stimulate robust economic growth by setting interest rates artificially low. The general theory is that cheap credit compels individuals and businesses to borrow more … Continue reading
Constructive Simplicity for China’s Communist Party Plenum
The People’s Bank of China cut benchmark interest rates by 0.25 percent on Friday. This was the sixth time they’ve lowered interest rates within a year. Bank reserve requirements were also reduced by 0.5 percent. Economic growth has gradually declined … Continue reading
More Monetary Policy Madness
Something extraordinarily uncommon is happening. Something that hasn’t happened since 1988…back when the U.S. federal debt was just $2.6 trillion. According to the Institute of International Finance, wealth is not flowing into emerging markets for the first time in 27 … Continue reading
Amplified Losses
Federal Open Market Committee meetings are always a spectacle. The forthcoming FOMC meeting, scheduled for September 16 and 17, should be particularly endearing. For despite the Fed’s claim to provide transparency the upcoming policy announcement is cloudier than pollywog stew. … Continue reading
