Ben Bernanke’s term as chairman of the Fed ends in January, and it is widely expected that he will not stay on. Speculation has recently heated up over as to who his successor will be.
The conventional wisdom is that current Vice Chairman Janet Yellen and former Treasury Secretary Lawrence Summers are the most [...]
This week, Senators John McCain, Elizabeth Warren, Maria Cantwell, and Angus King introduced legislation to essentially reinstate the Glass-Steagall Act of 1933, which was repealed in 1999. It would force financial institutions to be either pure commercial banks or pure investment banks.
Glass-Steagall was wrong and indeed harmful the first time around, and it is [...]
“The actual instrument adjustments necessary to make a nominal GNP rule operational are not usually specified in the various proposals for nominal GNP targeting. This lack of specification makes the policies difficult to evaluate because the instrument adjustments affect the dynamics and thereby the influence of a nominal GNP rule on business-cycle fluctuations.”
“The Theory of Economics does not furnish a body of settled conclusions immediately applicable to policy. It is a method rather than a doctrine, an apparatus of the mind, a technique of thinking, which helps its possessor to draw correct conclusions.”
- John Maynard Keynes, 1922, Money (v)
In this blog, I [...]