Reforming Bank Reform
Davies, Howard. Over the last three years, oceans of ink (or bytes) have been expended on articulating schemes to solve the conundrum of “too big to fail” banks. Many academics and pundits have castigated regulators and central bankers for their inability to understand the obvious attractions of so-called “narrow banking,” a restoration of Glass-Steagall-era separation […]
How Risky is the Global Economy?
El-Erian, A. Mohamed. Three years after the global financial crisis, the global economy remains a confusing place – and for good reasons. Should we draw comfort from gradual healing in advanced countries and solid growth in emerging economies? Or should we seek refuge against high oil prices, geopolitical shocks in the Middle East, and continued nuclear […]
Let’s Not Be Civil
Krugman, Paul. Last week, President Obama offered a spirited defense of his party’s values — in effect, of the legacy of the New Deal and the Great Society. Immediately thereafter, as always happens when Democrats take a stand, the civility police came out in force. The president, we were told, was being too partisan; he […]
A century of inflation forecast
D’Agostino, Antonello & Surico, Paolo. What does inflation predictability reveal about the conduct of monetary policy? This column investigates the ability of money growth and output growth for forecasting inflation across a century of US data. It uncovers a robust link between the nature of the monetary regimes and the ability to predict inflation several quarters […]