Saturday, 18 November 2017

Monthly Archives February 2010

Regulating the Financial Industry

Posted by Tom Duncan
February 26, 2010
in Blog

Wednesday’s Washington Post featured a column by Steven Pearlstein that sums up the ongoing debate over the regulation of the financial industry, or at least it attempts to do so. As we all know, the collapse of the financial industry played a major role in what has now become a worldwide recession. The obvious response […]

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Put Housing GSEs in the Budget and then Privatize

Posted by Tom Duncan
February 25, 2010
in Blog

“The two large housing government-sponsored enterprises, Fannie Mae and Freddie Mac, have been in government receivership since September 2008. The U.S. Treasury has given the housing GSEs $112 billion in cash infusions, and this past Christmas Eve it quietly announced it would cover all of Fannie and Freddie’s losses beyond the original $400 billion limit […]

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“Four Biggest Greek Banks Downgraded”

Posted by Tom Duncan
February 24, 2010
in Blog

“Fitch Ratings, citing concerns about Greek banks’ funding costs and profitability, downgraded the country’s four major banks to triple-B, or two notches above “junk” status. Fitch characterized its outlook for Greek banks as ‘negative’… The cost of funding for the four banks in question—National Bank of Greece, Alpha Bank, Efg Eurobank Ergasias and Piraeus Bank—has […]

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“Greenspan’s Monetary Policy in Retrospect”

Posted by Tom Duncan
February 23, 2010
in Blog

“Critics charge Greenspan with having carried on an excessively expansionary monetary policy, particularly following the recession of 2001. They note how low interest rates were from 2002 through 2004 and argue that those low rates paved the way for everything from high prices at the pump to high prices at the supermarket, from the housing […]

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Sound Money Essay Winners!

Posted by Tom Duncan
February 22, 2010
in Blog

The Atlas Sound Money Project is proud to announce the winners of its 2010 Atlas Sound Money Essay Contest. We are grateful for the carefully crafted, well-reasoned essays that we received from undergraduate and graduate students and young scholars from the think tank and policy communities.   It has been gratifying to see so many who […]

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“The Fed’s Great Rate Debate”

Posted by Tom Duncan
February 22, 2010
in Blog

“There are plenty of experts who argue that the Fed should move sooner rather than later to raise the federal funds rate, its key lending rate that is used as a benchmark for the interest paid on credit cards, home equity loans and many business loans. Keeping that rate, also known as the fed funds […]

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The Signals of the Fed

Posted by Tom Duncan
February 19, 2010
in Blog

The Fed made what it claims is a minimal change in strategy today, as it raised the emergency loan rate today from 0.5%. According to the Wall Street Journal, “The Fed said the move wasn’t meant to affect monetary policy…” Yet in a realm as dependent upon expectations as monetary policy, how could a marked […]

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Will Bernanke’s Exit Strategy Work?

Posted by Tom Duncan
February 19, 2010
in Blog

“On Wednesday, February 10, Federal Reserve Chairman Ben Bernanke was expected to appear before the House Committee on Financial Services to testify on the Fed’s extraordinary measures taken during the financial crisis, and how the Fed is planning to unwind them. Though cancelled by the “snowmageddon” that hit the DC area, has been published on […]

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“Japan’s Central Banker Rejects Setting Inflation Target”

Posted by Tom Duncan
February 19, 2010
in Blog

“Inflation targeting has become a favored policy among many central banks world-wide, but the BOJ has resisted it, fearing Japan’s strong downward bias in prices would prevent the bank from ever raising interest rates. Instead it has relied on a softer price guidance in determining policy. The bank uses a range between 0% and 2% […]

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“The Gold Standard”

Posted by Tom Duncan
February 19, 2010
in Blog

Lawrence H. White speaks to students attending FEE’s 2009 Young Scholars Colloquium at Northwood University. To see the full video, please go here. “The Gold Standard” Lawrence H. White Young Scholars Colloquium, July 16, 2009. Via the Foundation for Economic Education

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“U.S. Expected to Press China on Yuan”

Posted by Tom Duncan
February 18, 2010
in Blog

“The mounting political tension between U.S. and China is poised to take on a more pronounced economic component—with Washington, in coming months, expected to press China over what officials see as an undervalued yuan. This week, China is facing off with the U.S. over President Barack Obama’s planned meeting Thursday with the Dalai Lama, who […]

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“Stagflation Comes to the U.K.”

Posted by Tom Duncan
February 17, 2010
in Blog

“Inflation in the U.K. hit 3.5% annually in January, a level that required central banker Mervyn King to write a letter of explanation to the Treasury. Mr. King lays the blame for the price uptick largely at the feet of idiosyncratic factors. These include the Jan. 1 increase in the VAT rate to 17.5% from […]

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“The United States: Debtor and Leader?”

Posted by Tom Duncan
February 17, 2010
in Blog

“China sees a clear link between America’s ability to stand up for human rights and its economic interests—and Beijing isn’t afraid to exploit it. Mr. Weiqun was bluntly reminding the U.S. to take a close look at its balance sheet before indulging in any displays of moral support for an exiled Buddhist monk deemed a […]

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Dr. Judy Shelton Joins Atlas!

Posted by Tom Duncan
February 17, 2010
in Blog

The Atlas Economic Research Foundation and the Sound Money Project welcome Dr. Judy Shelton as a new Senior Fellow. As an economist specializing in global finance and monetary issues, Dr. Shelton has given expert testimony before the Joint Economic Committee, Senate Banking, Senate Foreign Relations, House Banking, and House Foreign Affairs committees. Her international articles […]

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“Stimulus Measures May Lead to Another Crisis”

Posted by Tom Duncan
February 17, 2010
in Blog

“Reserve Bank of India (RBI) Governor D Subbarao expressed is fears that the stimulus packages rolled out by central banks and governments to resolve the global financial meltdown, could lead to another financial debacle. This could be in the form of currency or fiscal crisis, the Governor said, reports PTI.” Read more. “Stimulus Measures May […]

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“Australia Under Threat From US Economic Policy”

Posted by Tom Duncan
February 17, 2010
in Blog

“Australia’s inflation target band is a touch higher and more flexible than those of most other advanced economy central banks, such as the Bank of England’s 2 per cent target. But this has still delivered relatively stable and low inflation in the face of wide swings in the Australian dollar. The Reserve Bank has not […]

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“US Looks Abroad for Housing Help”

Posted by Tom Duncan
February 16, 2010
in Blog

“As the U.S. housing market boomed in the past decade and fueled a bull market in mortgage investments, Norway’s government-owned fund went along for the ride — and the fall.” Read more. “U.S. looks to reluctant foreign investors to help fund the housing market” Howard Schneider The Washington Post, Tuesday, February 16, 2010.

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“Financial Crises and the Federal Reserve’s Punch Bowl”

Posted by Tom Duncan
February 15, 2010
in Blog

“Why did the U.S. financial system nearly collapse last year? People blame Wall Street’s excessive greed and risk-taking. But without easy money, the massive risk-taking could not have happened. To be sure, financial firms leveraged up—that is, they did a lot of business with borrowed money. That juiced up revenues and bonuses in the boom—and […]

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The Yo-Yo Tactic: Stop and Go Economics

Posted by Tom Duncan
February 12, 2010
in Blog

In an op-ed for the Wall Street Journal, Fed Chairman Ben Bernanke commented on his “exit strategy”. There is a large amount of money floating around in the economy, and the Fed is finally starting to worry about it. Thus far, banks have held back the flow by keeping high reserves, but as Bernanke says in his […]

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“Competing Money Supplies”

Posted by Tom Duncan
February 12, 2010
in Blog

“What would be the consequences of applying the principle of laissez-faire—that is, completely free markets—to money? While the idea may seem strange to most people, economists have debated the question of competing money supplies off and on since Adam Smith’s time. In recent years, trends in banking deregulation, developments in electronic payments, and episodes of […]

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“The Financial Crisis, In Rhyme Form”

Posted by Tom Duncan
February 11, 2010
in Blog

“The volume of mortgages written back then Stunned imaginations. In a single quarter in 2003, A trillion in originations! But something happened late that year That caused long rates to rise. And that was the end of the refi boom. It came as quite a surprise.” Read more here. “The Financial Crisis, In Rhyme Form” […]

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“Money and the Present Crisis”

Posted by Tom Duncan
February 10, 2010
in Blog

“It is largely a myth that unregulated financial capitalism failed and new regulation is needed. Aside from health care, financial services is the most heavily regulated industry in the economy. No part of it completely escaped regulation and most parts were heavily regulated, typically withmultiple government agencies overseeing the activities of financial services firms.” Read […]

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“An International Monetary Fund Currency…”

Posted by Tom Duncan
February 9, 2010
in Blog

“To alleviate the global recession, the G-20 group of nations recently agreed to authorize the International Monetary Fund to allocate $250 billion worth of Special Drawing Rights — the IMF’s unit of account — to its member states. This sparked much discussion on whether the SDR could become a new international currency, rivaling the U.S. […]

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“Argentina Seizes the Central Bank”

Posted by Tom Duncan
February 8, 2010
in Blog

“After a month of wrangling, Argentine President Cristina Kirchner succeeded in sacking central bank President Martin Redrado last week. In his place she named Mercedes Marcó del Pont, a Yale-trained economist who has expressed the view that central bank autonomy ought to be limited.” Read more. “Argentina Seizes the Central Bank” Mary Anastasia O’Grady The […]

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It’s October 1931

Posted by Tom Duncan
February 5, 2010
in Blog

“We are now more than two years into the Great Recession, which began in December 2007. In the Great Depression, this was the point where the Fed decided to raise interest rates to keep the dollar from depreciating (after Britain left the gold standard.) Mr. Bullard of the St. Louis Fed wants to see “at […]

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Henry Hazlitt’s “Lenin Was Right”

Posted by Tom Duncan
February 4, 2010
in Blog

Our friends at the Foundation for Economic Education have started a From The Archives blog. The intent is to pull content from their substantial archives (featuring many famous economists such as F.A. Hayek, Henry Hazlitt, Murray Rothbard and more) and show how those words are still relevant today. Here’s an excerpt from the latest post […]

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“How Did We Get Into This Mess?”

Posted by Tom Duncan
February 3, 2010
in Blog

“As policymakers confront the ongoing U.S. financial crisis, it is important to take a step back and understand its origins. Those who fault “deregulation,” “unfettered capitalism,” or “greed” would do well to look instead at flawed institutions and misguided policies.” Read more. “How Did We Get Into This Mess?” Lawrence H. White Briefing Papers, No. […]

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“Shughart: Bernanke agonistes”

Posted by Tom Duncan
February 2, 2010
in Blog

“Mr. Bernanke has become something of a lightning rod for critics on the left, who think his response to the financial crisis that triggered the recession has been too timid, and for those on the right, who charge that the Fed has been overly aggressive and will be unable to unwind its easy-money policy and […]

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“Financial Crisis and Public Policy”

Posted by Tom Duncan
February 1, 2010
in Blog

“This Policy Analysis explains the antecedents of the current global financial crisis and critically examines the reasoning behind the U.S. Treasury and Federal Reserve’s actions to prop up the financial sector. It argues that recovery from the financial crisis is likely to be slow with or without the government’s bailout actions.” Read more. “Financial Crisis […]

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