VoxEU.org - 4/14/2009
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Robert E. Hall , Susan Woodward , 13 April 2009 The Fed’s astoundingly large increase in reserves has many worried about future inflation and wringing their hands over exit strategies. This column argues that the Fed can control inflation by varying the interest rate it pays (or charges) banks ...
baselinescenario.com - 4/8/2009
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baselinescenario.com —
For a complete list of Beginners articles, see
Financial Crisis for Beginners . Only a few years...
ago, the accepted remedy for a recession was for the Federal Reserve to lower interest rates - namely, the Federal funds rate . Now, however, the economy has been stuck in recession for over ...
(more)
Inflation Expectations for Beginners
krugman.blogs.nytimes.com - 4/20/2009
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krugman.blogs.nytimes.com —
Greg Mankiw says yes. Since that was the
answer I arrived at for Japan more than a...
decade ago, I have to say that it makes sense in principle. But here's why it won't work now, at least not yet: we're talking about making a credible commitment to ...
(more)
Is inflation the answer?
forbes.com - 4/10/2009
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forbes.com —
As the U.S. federal government vows to spend
whatever it takes to get our financial system back...
on track, some investors are starting to worry not about the deflation of the present, but the inflation to come. In some ways, this might seem perverse. ...
(more)
Don't Fear Inflation
Comments
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Guest Post: The Fed's New Tool to Fight Inflation?
naked capitalism —
Submitted by Lune. As the Fed embarks on quantitative easing, a large number of economists have voiced concerns about the resulting inflation that we may face once the economy starts to recover. The traditional tool for fighting inflation is contracting the money supply, usually by decreasing the reserves available, thus constraining the total amount of money that may be lent by the fractional banking system. Sceptics worry that since those reserves are now backed by illiquid -- and frequently impaired -- assets, the Fed will have a hard time shrinking the reserves outstanding. In ...
Hall and Woodward on Fed Policy
Greg Mankiw's Blog —
Bob and Susan are not worried about inflation.
The Wonderful World Of Negative Nominal Interest Rates, Again
Daily Markets —
The Wonderful World Of Negative Nominal Interest Rates, Again By Willem Buiter on June 5, 2009 | More Posts By Willem Buiter | This article originally appeared on www.VoxEU.org. Some economists are arguing that central banks should set negative nominal interest rates. This column explains the basics by describing three ways of removing the zero lower bound on nominal interest rates: abolish currency, tax currency holding, or decouple the unit of account from the currency by introducing a new currency. I was in Frankfurt at the European Central Bank recently to meet people and give a presentation on ...
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