monetary policy

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Monetary policy for depression

SAO PAULO | By Marcus Nunes | Friedman was right to claim how easy it would have been to avoid the depression, given how easy it was to turn the economy around. Today, on the other hand, we are content with remaining ‘depressed’.


Ben Bernanke and Mario Draghi

Is Mario Draghi bothered?

MADRID | By Luis Arroyo | Monetary policies are a by-product of politics, after all, and in Europe, politics are tightly controlled from Berlin, which will probably use the Fed’s reaction as example of what the ECB must do.


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Monetary policy of the future

BARCELONA | By CaixaBank research | Compared with its pre-crisis size, the balance sheet of the Federal Reserve in the US has tripled while the European Central Bank’s has only doubled.


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Bernanke 1, Draghi 0

By Luis Arroyo, in Madrid | The US economy is on its way up to the growth heaven while others, like Europe, live under the knife. Broad money or M3 volumes have increased in the US by 10pc. In terms of what it is strictly required, the Federal Reserve is fulfilling its duties. The broad money supply includes factors of money supply and money and credit demand, which means that there is activity in all money and financial markets. The…


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That Lagarde’s speech [video]

Christine Lagarde, the International Monetary Fund’s managing director, was talking on Tuesday in Berlin about the obvious economic challenges in 2012, and a possible policy path for global cooperation to restore confidence and growth. Readers from around the peripheral European Monetary Union zone have convinced The Corner that Ms Lagarde’s words have achieved quite an echo among member states currently undergoing net austerity pressures. These are some of the most celebrated…



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Zero interest rate and other myths of the Great Depression's U.S. monetary policy

By Miguel Navascués, in Madrid | H. Clark Johnson, professor at Yale University, identifies in a paper titled Monetary policy and the Great Recession, what he calls the six myths of U.S. monetary policy during the Great Depression. The paper not only explains the cause of the hole we’re in, but also the reasons why zero interest rate does not imply monetary expansion. In the latter case, the reason is simple:…


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Zero interest rate and other myths of the Great Depression’s U.S. monetary policy

By Miguel Navascués, in Madrid | H. Clark Johnson, professor at Yale University, identifies in a paper titled Monetary policy and the Great Recession, what he calls the six myths of U.S. monetary policy during the Great Depression. The paper not only explains the cause of the hole we’re in, but also the reasons why zero interest rate does not imply monetary expansion. In the latter case, the reason is simple:…