It’s interesting to read stories on the Swiss Franc today because it’s not the case study we’re all used to hearing. Normally a country is forced to devalue in order to save its economy from higher interest rates elsewhere. The Swiss National Bank is instead saying it is forced to RE-value because it can’t, what […]
Economics
Did quantitative easing work? A visualization on jobs, interest rates & QE
It looks like Republicans want a little credit for the growing number of new jobs. No doubt Obama will point it out incessantly when he speaks for the next Democratic nominee for President. But you won’t be hearing about the Bernanke or the Yellen economy. The folks that do the most to steer aggregate demand […]
Monetary economics in The Hobbit
It’s always interesting to watch a science fiction or fantasy movie and see how the characters deal with money. For example, in Star Trek IV when the crew travels back in time, there’s a scene where a woman (who obviously likes Kirk) mentions sarcastically that they probably don’t have money in the future. Kirk replies “we don’t”. […]
Why no inflation? Because the Fed tail doesn’t wag the dog
A lot of economists predicted the coming of hyperinflation with successive rounds of quantitative easing by the Federal Reserve. Inflation in the 1970’s came from too-loose monetary policy. They argued that loose policy since 2008 would result in the same consequences. Why hasn’t that happened? Read More