The Great Debate

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.

Uncertainty, distributions and fat-tails

August 6, 2010

In a thoughtful article published this week in the Financial Times, PIMCO Chief Executive Mohamed El-Erian and Columbia Economics Professor Richard Clarida explore the implications of a shift in the shape of investors’ and policymakers’ expectations about the future.

Getting ready for the dollar’s fall

August 20, 2009

Agnes Crane It just won’t go away, this needling worry about the U.S. dollar losing its coveted top-dog status.