Pulse: Monetary Policy

10-Year Retrospective: Lesson 3 | Why Reform Must be International

Gradually, inch by painful inch, the central bankers are losing their clothes – the comforting ideology that has enveloped them like a warm garment for more than a generation. This is the ideology, or “regime”, of central bank independence and inflation targeting (CBI+IT). Oh, how shy they are! Look how they hold onto any scraps!

10-Year Retrospective: Lesson 2 | Central Banks into Milch Cows

A leading economist has predicted that central banks will not remain independent much longer. His forecast was made  at  a Bank of England conference called to celebrate – yes – 20 years of independence. Guests included Mrs Theresa May, the Prime Minster. It was opened by the Governor, Mark Carney, who drew a different, but equally startling, lesson from the crisis.

Willem Buiter, chief economist of Citi, put up two slides where he declared that:

Four Takeaways from the FOMC Meeting

My Four Takeaways from This Week’s FOMC Meeting.

Central Banks: The Only Game in Town