Monthly Archives: September 2013

How Does QE Lower Interest Rates?

At each quarterly meeting, FOMC members are asked to state what they think would be an appropriate forward path for the Fed Funds Rate, given their present expectations about future inflation and unemployment. ¬†The following table and chart show how … Continue reading

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A Central Bank that Fights Bubbles Needs Control Over Fiscal Policy

In 2003 and 2004, a debate emerged in academic and financial circles over the appropriateness of the Fed’s “easy money” response to the crash of the tech bubble and the ensuing recession. ¬†Hawks argued that the Fed’s low rate policy … Continue reading

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Visualizing Developed Market Equity Returns: 1970 – 2013

The following chart shows nominal total equity returns in local currency terms for select developed market countries from the beginning of January 1970 through the end of August 2013. The UK is way out ahead of the pack, almost doubling … Continue reading

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