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 …

What economists need to know about the modern money creation process

by Manmohan Singh and Peter Stella, Voxeu The world of credit creation has shifted over recent years. This column argues this shift is more profound than is commonly understood. It describes the private credit creation process, explains how the ‘money multiplier’ depends upon inter-bank trust, and discusses the implications for monetary policy. One of the …

The Fed: Continuing Down the Path of Desperation

by Erik McCurdy, Promethius Market Insight Editor’s note: This appeared Wednesday 20 June 2012 as the Prometheus Daily Investing Thought on the Global Economic Intersection front page. The Federal Reserve announced today that it will continue to hold short-term interest rates at effectively zero.As expected, no new stimulus programs were announced, although it was decided to …