Clarifying the Debate about Deflation Concerns

by Mickey Levy, A popular view among economic commentators is that rich countries face a serious risk of deflation, and should adopt aggressive macroeconomic stimulus policies to ward it off. This column argues that despite similar headline inflation rates, the US, Europe, and Japan in fact face very different macroeconomic conditions. In the US, …

Debtonomics: Currency Crisis

An argument can be made that under our present circumstances analysis of the declining economic order is not particularly relevant: it is best to look forward rather than pick over the past, to let the current regime fall apart and build something new and better on the ruins.

ZIRP and QE are Deflationary

The headline Producer Price Index for November was down 0.1%, in line with the consensus guess of economists. What’s going on? Aren’t QE and ZIRP supposed to be inflationary?

Weaker Growth and Softer Inflation

Hoisington Quarterly Review and Outlook, Third Quarter 2013 by Van R. Hoisington and Lacy H. Hunt, Hoisington Asset Management Federal Reserve Failures The Fed’s capabilities to engineer changes in economic growth and inflation are asymmetric. It has been historically documented that central bank tools are well suited to fight excess demand and rampant inflation. The …

QE myths and the Expectations Fairy

by Frances Coppola, CoppolaComment.Blogspot.Co.UK There are perhaps more myths about QE than almost any other monetary policy instrument. Here are five of the most pernicious QE myths: ••••••••••••••••••••••••••••••••••••• Myth 1: QE raises inflation. Despite the considerable evidence that it does nothing of the kind, people still persistently believe that it does – that “eventually” inflation …