The Great Debate

from The Great Debate UK:

How central bankers have got it wrong

September 24, 2013

If you asked someone to list the chief qualities needed to be a good central banker I assume that the list may include: good communicator, wise, attention to detail, clear thinking, credibility, and good with numbers.  However, in recent months these qualities have been sadly lacking, most notably last week when the Federal Reserve wrong-footed the markets and failed to start tapering its enormous QE programme.

Why conservatives spin fairytales about the gold standard

By Charles Postel
September 17, 2013

ILLUSTRATION: Matt Mahurin

The Federal Reserve is celebrating its 100th birthday trapped in a political bunker.

from Blogs Dashboard:

A devalued pound can’t save the British economy

By Peter Gumbel
March 14, 2013

There it goes again. Sterling has been dropping sharply this year against the U.S. dollar and especially the euro, as Britain turns to a tried and trusted remedy for its economic problems: devaluation. Even with its slight uptick on Wednesday, sterling is down more than 6 percent against the euro since the beginning of 2013 and has slid 10 percent over the past six months.

The real winner: Inflation

By Matthew Stevenson
November 10, 2012

I buy none of the post-election, prime-time hokum that what decided the presidential race was the Latino vote, women’s issues, the next Supreme Court justices, the view from the fiscal cliff or how drones are winning the War on Terror. This presidential election was, as always, a contest between gold standardists and inflationists.

from MacroScope:

India’s central bank battles alone in inflation struggle

April 19, 2011

INDIA-ECONOMY/RATES What more does India's central bank have to do? Last week data showed March inflation rising to almost 9 percent on an annual basis. More importantly, core inflation is above 7 percent for the first time in 3 years meaning demand-side pressures are rising fast. And that's despite the Reserve Bank of India raising interest rates eight times since last March.

Markets make prisoner of the Fed

October 22, 2010

“Market participants should not direct policy,” Kansas City Fed President Thomas Hoenig warned listeners at a town hall meeting in Lincoln, Nebraska, back in August. Unfortunately that is precisely what is now happening.

There is no such thing as inflation

October 18, 2010

In 1987, UK Prime Minister Margaret Thatcher whipped up a firestorm of criticism from her opponents on the left when she told a magazine reporter that “there is no such thing as society”, only individual men and women, and families.

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.

Markets trapped between euphoria and despair

July 6, 2010

“Don’t panic!” was good advice provided by Lance-Corporal Jones to his commanding officer in the 1970s BBC comedy series “Dad’s Army”. Perhaps it should now be directed to central banks and increasingly jittery investors.

Inflation or Deflation, why settle for just one?

By J Saft
July 1, 2010

If you are trying to decide whether to fret about inflation or deflation, don’t bother: you may just get both.