In a November 8 commentary, Johns Hopkins economist Jonathan Wright examined the inflationary expectations embodied in bond yields and finds that the bond market is still expecting very low inflation for the foreseeable future. (Note: economic theory says that long-term bond yields will rise as inflationary expectations rise.)
In a November 8 speech, Federal Reserve Bank of Dallas president Richard Fisher expressed optimism about the economic recovery and concern about possibly excessive liquidity in the financial system that could become inflationary.
On November 5 & 6, the Federal Reserve Bank of Atlanta hosted a conference on the history of the Federal Reserve System from its founding in 1913 to the present. Papers were presented by leading scholars in the field that are available for download.
On November 4, Federal Reserve Board chairman Ben Bernanke published an op-ed article in the Washington Post explaining why the Fed has undertaken additional monetary expansion.
On November 3, the Federal Reserve Board announced plans to buy an additional $600 billion in Treasury securities over the next 7 months in order to expand the money supply and increase economic growth.
A November 2 report from Morgan Stanley raised questions about the impact of further quantitative easing by the Federal Reserve. One channel not generally recognized is how foreign countries will react to changes in the exchange rate.
In an October 27 commentary, University of Texas economist Robert Auerbach was highly critical of the Federal Reserve’s policy of paying interest on reserves.
In an October 26 speech, Bank of England economist Adam Posen argued that asset bubbles are determined far more by international capital flows than by monetary policy.
In an October 25 commentary, Peterson Institute economist Anders Åslund was highly critical of further quantitative easing by the Federal Reserve, arguing that the likely negative consequences outweigh the positive.
I last posted items on this topic on October 25.
Bruce Bartlett is an American historian and columnist who focuses on the intersection between politics and economics. He blogs daily and writes a weekly column at The Fiscal Times. Read his most recent column here . Bartlett has written for Forbes Magazine and Creators Syndicate, and his work is informed by many years in government, including as a senior policy analyst in the Reagan White House. He is the author of seven books including the New York Times best-seller, Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy (Doubleday, 2006).
