monetary policy

All hail Ronald Reagan

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Apparently, the editors of the Wall Street Journal have a rule about the number of op-eds each week that praise Ronald Reagan.  I haven’t figured out the exact count yet, but Robert Barro’s piece in Monday’s Journal gets the paper off to a nice start on their weekly quota.  It’s a pity that there are … Read more

Interesting reading

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The 600-plus page report of the US Financial Crisis Inquiry Commission should make for interesting reading for those with the patience to read it.  It would be useful to wade into the argument between the Commission, which argues that the crisis was “avoidable” and the Financial Times, which argues that it was not.  Maybe later. … Read more

Don’t change the Fed’s mandate

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Writing in the Financial Times, Stephen Roach concludes that it is “[t]ime to revamp the Fed’s flawed mandate.” Roach argues that maintaining financial stability should be added to the Fed’s current dual mandate of maximum employment and price stability.  Such a change would be ineffective at best, destructive at worst. It would be ineffective because … Read more

Sailing to a stronger economy on the QE2

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One of the nice things I have discovered about doing jury duty is that when it is all over, the judge usually comes in to thank the jurors for their service (or for coming down to the courthouse, if they don’t end up on a jury).  When the judge discovered that I am an economist … Read more