Read my latest Oxford University Press blog post on ultra-low rates. The post is based on a presentation I will make at the SUERF/OeNB/BWG Conference on “Asset-liability management with ultra-low interest rates,” at the Austrian National Bank in Vienna on March 11, 2015.
Barack Obama recently indicated that he is unlikely to reappoint Ben Bernanke as chairman of the Federal Reserve when his term expires next January. Understandably, the media is focused on who might succeed Bernanke to lead the US central bank. After all, the chairman of the Federal Reserve is often described as the second most … Read moreBernanke’s legacy
Last Friday, a top British top financial regulator issued a report suggesting numerous reforms to the London Interbank Offered Rate (Libor). Libor, a benchmark interest rate that affects more than $300 trillion in financial transactions, is constructed from the cost of funds estimates submitted by a handful of large banks. This summer, e-mails surfaced showing … Read moreLibor needs to be scrapped—not reformed
Most of us spend more time thinking about the latest London Olympics results than the scandal surrounding the London InterBank Offered Rate, or Libor. That is a big mistake. We should be paying more attention to the Libor scandal. And we should be terrified. The public has been so fatigued by the flood of awful … Read moreThe biggest threat to capitalism
Since the outbreak of the subprime meltdown, the Federal Reserve has shown itself ready, willing, and able to adopt unconventional monetary policies in order to reverse the downturn ushered in by the financial crisis. Recent Fed innovations have included quantitative easing in order to inject more money into the economy, intervention in the debt market … Read moreTime to go negative!
I cannot let this day end without acknowledging the 145th anniversary of the failure of Overend, Gurney, and Company, which set off one of the 19th century’s more spectacular financial crises. Writing the day after the failure, the Times of London argued that the firm could,”…rightly claim to be the greatest instrument of credit in … Read moreHappy 145th Anniversary!