Jerome Powell replaced 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. One alternative for the new Fed … Continue reading Making Sense of Nominal GDP Targeting
Robert Lucas: Lower Your Expectations
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. I’m never surprised by the rush hour or the long lines. Sometimes, I get frustrated with myself before I get caught in … Continue reading Robert Lucas: Lower Your Expectations
The Silver Fox Gets Us Ready For A Rate Hike
To update, the Fed has increased the fed funds rate 25 basis points to 1 percent as of March 15. Read more here. Whether or not the Silver Fox is just teasing as usual, it is definitely time for millennials to experience a rate hike with interest rates above zero. On March 3, the Fed’s … Continue reading The Silver Fox Gets Us Ready For A Rate Hike
Daily Prompt: Disagree
via Daily Prompt: Disagree Rant: A Day in My Life of Disagreements It seems like every day is composed of my disagreeing with pretty much everything and having to defend myself as gracefully as I can. Every morning I disagree with my alarm clock. At 7:00 am, it hastily alerts me that I should wake up … Continue reading Daily Prompt: Disagree
What The Rate Hike Means For Us
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 … Continue reading What The Rate Hike Means For Us