Tag Archives: zirp

Pipe Dream Economics

Fiscal policy, as opposed to monetary policy, is more readily understood by the average working stiff. Income taxes, budget deficits, the national debt. These are all tangible things people can grasp a hold of, if they care to. The consequences of zero interest rate policy (ZIRP) or quantitative easing (QE), however, are less obvious to the casual observer. Continue reading

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Life After ZIRP

Federal Reserve Chair Janet Yellen finally made good on her promise.  On Wednesday she raised the federal funds rate to a target range of 0.25 to 0.5 percent.  Can you believe it? After nearly a decade since the last rate … Continue reading

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Is Janet Yellen a Jenny Ass?

Federal Reserve Chair Janet Yellen’s at the top of her game.  She knows exactly what to do.  She’s a PhD economist, after all.  Her various affiliations with the Fed go back nearly 40 years.  She knows what the correct Fed … Continue reading

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Lost in Extrapolation

In the late 1970s the impossible happened.  Inflation and unemployment simultaneously went vertical.  The leading economists of the day were flummoxed. The Phillips curve said there’s an inverse relationship between inflation and unemployment.  When unemployment goes down, inflation goes up.  … Continue reading

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