In less than a month, Jerome Powell will replace Janet Yellen as the new Chairman of the Federal Reserve. This change will give the Fed a chance to reconsider how it conducts monetary policy. There had been a consensus among macroeconomists since the 1980s, but like many things, it was shattered by the Great Recession. Continue reading “Making Sense of Nominal GDP Targeting”
Don’t you hate it when you hit rush hour traffic? How about when you end up going to lunch at your favorite chicken spot and the line is out the door? Me too. Continue reading “Robert Lucas: Lower Your Expectations”
To update, the Fed has increased the fed funds rate 25 basis points to 1 percent as of March 15. Read more here. Continue reading “The Silver Fox Gets Us Ready For A Rate Hike”
The silver fox may come bearing gifts this holiday season, as the Fed will (probably) increase the mother of all interest rates—the federal funds rate.
In an attempt to save the economy from the financial crisis of 2008, the Fed dropped the federal funds rate down to effectively zero. For close to seven years, the rate has not budged. Finally, it seems like the Fed is okay with loosening the grip off the economy’s bike seat, and reigning in some of the money in circulation. Continue reading “What The Rate Hike Means For Us”