Economy News

from AIER

Established 1999

New England, USA

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    “How Did We Get Into This Mess?”

    “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”

    “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”

    “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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    “China Cools Lending Pace”

    “China hopes cooling the pace of lending will keep its economy growing without creating inflation and overheating.” See the CNN video here. “China Cools Lending Pace” CNN, January 25, 2010.

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    “The Fed’s Anti-Inflation Exit Strategy Will Fail”

    “Federal Reserve Chairman Ben Bernanke has explained his exit strategy to prevent future inflation. The Fed recently began to pay interest to banks on the reserves they hold in their vaults. Using this new tool, it claims the ability to get banks to keep the money instead of lending it out, thus containing the money…

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    A History of the Federal Reserve: 1913-1951

    “A history of the Federal Reserve is a history of the decisions made and the ideas that prompted them. The chapters that follow allow the participants to explain their action and the reasons for them, in their own words. These decisions produced very different results: a steep postwar recession in 1929-21, a period of stability…

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    “Federal Government Continues Its Money Monopoly”

    “Prices rise soonest, fastest, and highest where the money is being loaned out. During the realestate boom until 2007, much of the lending went to real estate, and land values zoomed up. The Federal Reserve money monopoly does not just inflate the currency, but causes distortions that end up in recessions such as the current…

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    “Freedom and Sound Money”

    “In all countries of the so-called ‘free world,’ money represents nowadays a government controlled irredeemable paper, or ‘fiat,’ money standard. The widely held view is that this money system would be compatible with the ideal of a free society and conducive to sustainable output and employment growth. To be sure, there are voices calling for…

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    Change Policy, Not Blame

    The Obama administration thinks it has found the cure all for its economic woes. The solution: regulate, restrict and play God in the economy. (Not exactly a new strategy for government.) In usual fashion, government regulations and Fed policies bring about unintended consequences, and the blame is pushed elsewhere. With the economy still limping, the…

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    “The U.K.’s Persistent Inflation Problem”

    “The U.K.’s economic policy puzzle just got harder. Inflation was expected to rise in December, but not by a full percentage point to 2.9%. That is well above market expectations of 2.6% and the Bank of England’s forecast of about 2.7%. It certainly puts the kibosh on any extension of quantitative easing beyond February, no…