For the non-cognoscenti: “IOR” is interest on reserves. Banks keep money in their accounts at the Fed. In October, 2008 the Fed started paying .25% interest on those accounts. The Fed’s also engaged in “quantitative easing,” a.k.a. open-market purchases on steroids, creating new money and using it to buy $1.6 trillion dollars worth of bonds […]
In the previous post, I suggested that speculation is driving oil prices higher than they should be. In this follow-up, I think I can show that oil prices are not behaving in a completely supply-demand determined way. We’ll look at price activity, volatility, and an estimate of what rational pricing might be. First, here is […]
(Update: Dan here…Brad DeLong takes note) I think this is a totally fair excerpt from this post by Kantoos I realized this three years ago, in early 2009, when I read John Cochrane’s piece on fiscal stimulus . It is a little convoluted, unfortunately, but an interesting read nonetheless. I would have loved to read […]
Maybe the appropriate title for this is: Do as I say and not as I do…. Just listening to Thom Hartman and he noted something that struck a cord (chord?) with me: voter ID, electronic ballots. In the caucuses last night, the Republican party did not require and ID, they allowed onsite registration and hand […]
Today, the Consumer Financial Protection Bureau gets its first director — and its full powers. President Obama gave Richard Cordray a recess appointment that Republicans cannot block.
An organization that is called: American Institute of Certified Tax Coaches has put up a summary graphic of the various tax proposals ofthe GOP candidates. It not only notes the major points of their plans, but what their plans would cost. It is presented in a sort of game board race layout. The Institute introduces […]
Last Spring, some Democrats and liberals (Ed Schultz and Bernie Sanders spring readily to mind) who have somehow resisted the enlightenment of unfettered free markets suggested that high oil prices are due to speculation. Noah Smith took this subject on, asking the question: “Do speculators cause oil and/or gas prices to rise above their “natural” […]
Whether it’s Market Monetarist NGDP targeting (a.k.a. Damn The Inflation Rate; We Need Growth!) or Menzie’s recommendation of Conditional Inflation Targeting with a notably higher target, everything tells us that somewhat higher inflation is the current path to greater and more widespread long-term prosperity. Raising the expected inflation rate will lower real interest rates and […]
Jazzbumpa has been writing about various topics that involve economics for several years now. He maintains several blogs, one of which is Retirement Blues. He is data driven with a sense of humor and will add such to Angry Bear. Jazzbumpa is retired from a product development career in the auto industry. His education is […]
I go away for a week and the world collapses. While most of you probably noticed that Russell Brand is available again, the other Major Separation was at Capital Gains and Games, which is now exclusively Stan Collender’s as “principal writer and managing editor.” It is also rebranded “Stan Collender’s Capital Gains and Games.” (The […]