I have spilled a huge amount of ink about Quantitative Easing and its impacts over the last 5 years (see here). One of my key points about QE is to highlight how it probably hasn’t had as much impact on the broader economy as some people tend to imply. In other words, it’s not as stimulative as many think….
Category: Macro Perspectives
Common Myths About the Federal Reserve
Just an FYI here. I added a reference page in the “tools and resources” dropdown along with some other myth busting posts. This one covers some of the more popular myths about the Federal Reserve. If you can think of any I should add please let me know. Thanks.
Some Involuntary Unemployment is the Natural State of Capitalism
It’s very common in post-keynesian circles to hear that unemployment is somehow caused by the government. The general story goes along the lines that unemployment occurs when the government doesn’t [ … ]
Who Owns the Federal Reserve?
Good question here in the Ask Cullen page. I get this one a lot so it’s worth some detailed explanation. First, it helps to understand what the Fed really is. [ … ]
The Liquidity Trap Myth and The Central Bank as a Fiscal Entity
I agree with much of what Scott Sumner says in this post about liquidity traps and monetary policy. In essence, the idea of a “liquidity trap” is a distraction that reframes [ … ]
Credit IS Money
It’s common in economics and in general, for people to differentiate between “money” and “credit”. This is largely the result of gold standard mythology when gold was viewed as the [ … ]
Understanding why Austrian Economics is Flawed
Austrian Economics is a small school of mostly online Libertarian commentators that has gained popularity due to its large internet presence. The school has relatively little academic support and mainstream [ … ]
Banks are Special: the Ins & Outs of Money
I was going to drop the back and forth with Paul Krugman, but then he dangled this delicious treat in front of me and like any good little puppy I [ … ]
Banks and the Monetary Base – A Friendly Response to Paul Krugman
Paul Krugman is unhappy with me nipping at his heels about banking. But I think this is important and crucial to Dr. Krugman’s idea that the “synthesis” has been “lost” [ … ]