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The Yellen nomination: Robin Harding of the FT collects some quotes…

Brad DeLong, professor of economics | October 9, 2013

Robin Harding: Warm welcome to Yellen nomination: “Janet Yellen is a terrific choice to lead the Federal Reserve. I have admired and learnt from her ever since she taught my first macroeconomics graduate class in 1976” — Larry Summers “Janet is smart, collegial, and experienced. She is the perfect person to lead the Fed at … Continue reading »

On Federal Reserve policy: The “taper” and its shadow: Central-Bank policymakers need to better explain what they see as the risks of further Federal Reserve bond purchases

Brad DeLong, professor of economics | September 28, 2013

We are live at Project Syndicate. The central banks of the North Atlantic have promised that they will not raise the short-term safe nominal interest rates they control until the economies under their stewardship show substantial economic recovery. So far the economies have not done so: they continue to be battered by the destructive fiscal … Continue reading »

Yes, I am now strongly on team Janet Yellen as far as the Federal Reserve is concerned. Why do you ask?

Brad DeLong, professor of economics | September 18, 2013

And we are live at the *Financial Times*: Why Janet Yellen is now best choice to lead the Federal Reserve: There is, in my view, now only one candidate to be chair of the U.S. Federal Reserve. Janet Yellen, the current vice-chair, stands head, shoulders and torso above the rest of those on the shortlist. … Continue reading »

Fiscal policy issues in the United States

Brad DeLong, professor of economics | September 12, 2013

At the end of the 2008, the seriousness of the financial crisis and the resulting collapse in production and employment coupled with the Federal Reserve’s exhaustion of its traditional monetary policy-management took, the open-market operation, raised the possibility that the U.S. government should consider using activist expansionary fiscal policy as a stabilization-policy tool. Doubters offered … Continue reading »

The Sword of Greenspan

Carola Conces Binder, Ph.D. candidate, economics | June 23, 2013

According to an ancient Greek parable, Dionysius, the tyrant of Syracuse, had a courtier named Damocles who complemented Dionysius on his wealth and power. Dionysius asked Damocles if he would like to experience the kingly lifestyle. Damocles accepted the offer, and was enjoying the great luxury, until he noticed, hanging above him by a single … Continue reading »

Overheating and the Fed

Carola Conces Binder, Ph.D. candidate, economics | February 7, 2013

Governor Jeremy Stein of the St. Louis Federal Reserve gave a speech on February 7 called “Overheating in Credit Markets: Origins, Measurement, and Policy Responses.” Overheating is a term he uses to describe a credit market with low interest rates, lax lending standards, and high risk-taking by investors “reaching for yield.” The problem with overheating is that … Continue reading »