Tag Archives: Federal Reserve
rajan India central bank

Modi and Rajan face uphill battle with India’s growth and inflation

Given the potential conflict between Narendra Modi’s focus on growth and the Reserve Bank of India President Raghuram Rajan’s goal to curb inflation, both will need to work together to ensure a stable India. In the run up to Narendra Modi’s smashing victory in the Indian elections, rumors spread that the governor of the Reserve […]

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US Decline Series: Financial sector health makes US a sound investment

The US regulatory response to the crisis has resulted in a stronger market and equipped the US to deal with future crises. This GRI series challenges the myth of the American decline. Despite being half a decade removed from the global financial crisis, concerns remain about the health of financial systems in advanced countries. A closer […]

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Dodd-Frank

“Too Big to Fail” banks enjoy lower funding costs despite stronger regulations

Implicit subsidies for large systemic banks has come down since the crisis but it is still higher than before, reflecting an ongoing perception of government support for the largest banks. While the US economic recovery has strengthened recently, the effects of the financial crisis and subsequent government intervention still linger. The problem of “too big to […]

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currency wars

Book Review: Currency Wars

In his 2011 book Currency Wars: The Making of the Next Global Crisis, James Rickards explains that we are in the third reincarnation of currency wars. He highlights the fact that the Fed is currently undertaking the biggest financial gamble in history. James Rickards, an investment banker on Wall Street for over 35 years, has turned […]

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unemployment

How much slack does the U.S. labor market really have?

U.S. labor market slack, the unused part of economic production capacity, is an important economic indicator used by the Federal Reserve to determine forward guidance. The question is how much slack the FOMC thinks there is. When Fed Chair Janet Yellen told Congress that she would base her Federal Reserve decisions on a broader range […]

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Janet Yellen (credit: Economic Policy Journal)

Fed debates changing forward guidance

The quickly falling US unemployment rate has caused the Federal Reserve to reevaluate how it communicates when it will raise interest rates. Recently released minutes of the Federal Reserve’s last policy meeting showed that committee members disagree about the best way to communicate future policy as US unemployment has fallen close to their threshold for […]

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unemployment

Can monetary policy address U.S. long-term unemployment?

With Janet Yellen newly confirmed as Chairman of the Federal Reserve, investors are now parsing her testimony to gain insight on the future direction of interest rates.   One particularly interesting piece of her testimony involved the persistence of long-term unemployment and a high number of part-time workers: “These observations underscore the importance of considering more than the […]

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Janet Yellen (AP Photo/Mark Lennihan)

Yellen’s first statements chart clear path for Federal Reserve

The new Fed Chairwoman made clear to Congress that her Fed will focus on improving the labor market and being straightforward in its messaging. In her first major appearance since becoming the new Chairwoman of the Federal Reserve, Janet Yellen spent last Tuesday answering questions from the House Financial Services Committee. Although she had made abundantly […]

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Source: Flickr -- Regierungsgegner auf dem Weg zu Belagerungen via Wikipedia

Why Thai political unrest is not just more of the same

Political unrest surrounding the recent elections in Thailand casts a shadow on the future of the economy, which has already experienced contractions. Continued political discord will make Thailand a less and less attractive destination for foreign capital. The Thai general elections took place on February 2, 2014. Voting is divided into eight electoral areas, each […]

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Rafael Matsunaga via Wikipedia

US taper puts pressure on emerging markets

The Federal Reserve’s decision in January to continue reducing the pace of asset purchases has put emerging markets in a bind. At the end of January, the Federal Reserve decided to further reduce the pace of its monthly asset purchases by another $10 billion, down to $65 billion. This followed its December decision to initiate […]

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