Newsletter: A monthly brief of new insights on important economic, financial and policy issues.
Financial Stability & Dynamics
While the U.S. Federal Reserve holds its cautious course toward higher interest rates, European central bankers have doubled down on ultra-low interest rates in the form of negative interest rates. We recently spoke with Christian Noyer, honorary governor of the Banque de France, to get his thoughts on these extraordinary monetary measures, whether negative interest rates and quantitative easing are compatible, and whether central bank actions that may work in theory will work in practice.
Six and a half years since the end of the Great Recession, the Federal Reserve appears likely to raise interest rates for the first time at this month’s Federal Open Market Committee Meeting on December 15th
. We recently spoke with Kevin Warsh, former Fed governor, to get his thoughts on the timing of the impending rate rise, the Fed’s policy approach to normalizing markets, and why weakness in the global economy threatens the Fed’s tools, objectives and credibility in coming years.
Financial markets are seemingly obsessed with quantitative easing by the ECB and the BoJ, and the timing and magnitude of Fed rate increases. This ongoing financial market conversation has an odd dissonance: Although financial markets operate largely outside the banking system, the fervent discussion of Fed policy has an old-school money and banking cast to it. Let’s focus on that dissonance.
An update of our November 2014 interview with Peter Goodburn.
Commodity prices will synchronize below current lows before the “inflation pop” begins.
Despite headwinds, the U.S. dollar will continue to lead the global trade and financial systems.
Despite new regulations, the tendency of both the public and private sectors to overspend makes the financial system prone to crisis.
The stage is set for oil and gold to rise to new all time highs in 2014.
Libor manipulation is hard to prove statistically, but is prone to manipulation and needs to be regulated.
The former Fed Chairman comments on inflation dangers and speculative risk.
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