The Great Debate

The wrong sort of inflation

October 15, 2010

Chairman Ben Bernanke’s Fed is beset by demons of its own design.

Terrified by memories of the 1930s and Japan’s more recent experience in 1990s and 2000s, the academics who now dominate the Federal Open Market Committee display a hyperactive compulsion to tinker with monetary policy in a bid to solve all the problems besetting the U.S. economy.

QE2 to speed triumph of emerging markets

By J Saft
October 12, 2010

While “decoupled” is not the same as “immune”, look for growth and investment performance in emerging markets to be better than in the sclerotic developed world.

Fed is banking on phony wealth effect

By J Saft
October 7, 2010

The Federal Reserve is committed to enticing Americans into doing once again what worked out so badly in the last decade: spending the phony paper gains engineered by overly loose monetary policy.

Central banks face crisis of confidence

September 29, 2010

Central banks around the world are facing the worst crisis of confidence since the 1930s, as investors, households and firms question their commitment and ability to deliver price stability.

The Knightian dog ate my recovery

By J Saft
August 31, 2010

Remember when business and economic leaders droned on about “100-year storms,” 2008′s get-out-of-jail free card for people who missed the housing bubble?

Fed can’t fix broken economy, politics

August 12, 2010

The Federal Reserve’s decision to move to a kind of quantitative neutrality is a tacit admission that it, or rather that the United States, is in a political bind that makes a bold response to a deteriorating economy difficult.

Communities of color need financial protections

By Jose Garcia
May 19, 2010

- Jose Garcia is associate director for research and policy at Demos. He is responsible for providing statistical and policy analysis for Demos’ Economic Opportunity Program on issues such as household debt and assets. -

Bank lending and profits; a costly divergence

April 13, 2010

Don’t count on the profitability of the financial services sector as a leading indicator of anything. Well, anything other than financial services compensation.

from The Great Debate UK:

Greenspan and the curse of counterfactual

April 9, 2010

Laurence_Copeland-150x150- Laurence Copeland is a professor of finance at Cardiff University Business School and a co-author of “Verdict on the Crash” published by the Institute of Economic Affairs. The opinions expressed are his own. -

Tightening underway, Fed a passenger

February 23, 2010

A tightening in financial conditions is under way but its principal architect won’t be the Federal Reserve.