I thought the podcast below was a good one. Basically, central banks are making it up as they go along. It’s not a science. Also see William White on Ultra Easy Monetary Policy and the Law of Unintended Consequences.
Tag: William White
On Thursday, Philadelphia Federal Reserve President Charles Plosser gave a speech on Thursday called “A Limited Central Bank” that I highly recommend. The underlying theme of Plosser’s speech was that central banks should have a limited role but that they are being called on to do ever more. Below I want to expand on this theme in view of comments from Larry Summers on central banks and secular stagnation.
Even before the crisis, there were some who stressed that monetary policy should keep an eye on asset bubbles and the growth of credit. This column argues that the policy of inflation targeting, used widely in the 1990s and 2000s, did indeed lead to excessive credit growth that eventually bred financial instability.
I want to highlight the end of Fed Chairman Ben Bernanke’s speech at Jackson Hole yesterday because he reiterated something he has been saying for a while now – that the Fed will do more but it won’t be able to save the day by itself. I have underlined the important bits: Early in my tenure as a member of […]
The following is an excerpt of an article written for the Dallas Fed this month by William R. White, a well-known Canadian economist who served as Chief Economist for the Bank of International Settlements until 2008 and was also one of the few economists to have predicted the financial crisis. He is now head of Economic Development at the OECD. […]
Below is a framework that delineates the ideology and economics of two groups of economic thought that are much talked about in the wake of the Credit Crisis: the Chartalists and the Austrians. These two groups are considered outside of the mainstream and this is important because many economists and market pundits in both camps predicted the global credit crisis while almost no mainstream economists did. The questions are why and what separates them from mainstream Keynesians and Monetarists and from each other?
Topic of the Day: Positive Economic Data A few positive developments to highlight today. The data from China were generally good. Marc Chandler has the summary. Chinese Data Provides Boost to Risk Rally | Credit Writedowns Data from Germany’s ifo Institute show that Eastern Germany is catching up to Western Germany. There is still a considerable gulf, but during this […]
In my post Koo, White, Soros and Akerloff videos from inaugural INET conference I highlighted four speeches from the recent George Soros-sponsored pow-wow. I have already written up a post based on the one by William White in "The origins of the next crisis." This post serves to give you some colour on another of those speeches, the one by […]
William White, the former chief economist at the Bank of International Settlements (BIS) gave an important speech at George Soros’ Inaugural Institute of New Economic Thinking (INET) conference in Cambridge. While everyone is casting about for the one magic bullet solution which would have prevented this and future crises, he placed the blame for the credit crisis on short-termism, pointing […]
Marshall Auerback here with a report from King’s College, Cambridge, where some of the world’s policy makers and thought leaders are gathered to discuss a new direction for economics. Over the last thirty years, we have steadily moved from a bank lending credit system, to one in which capital markets have become the primary form of credit intermediation. Unfortunately, our […]
Social networks and the massive migration within China | vox Wirtschaftswunderland China: Der Weltfabrik gehen die Arbeiter aus – SPIEGEL ONLINE – Nachrichten – Wirtschaft Economic View – Rethinking the Government’s Role in Housing Finance – NYTimes.com The Renter Roadblock – NYTimes.com Glacier melting a key clue to tracking climate change It’s official: An asteroid wiped out the dinosaurs China […]
Caroline Baum had a good column today at Bloomberg in which she suggests central banks consider asset prices in monetary policy going forward. In the piece she quoted William White, a former economist from the Bank for International Settlements. He said: “The most calamitous downturns were not preceded by any degree of inflation. There was no inflation in 1873-74, in […]