Tag: William White

The limits of monetary policy, part 1

The limits of monetary policy, part 1

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.

How central banks contributed to the financial crisis

How central banks contributed to the financial crisis

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.

Bernanke says the Fed can do more but…

Bernanke says the Fed can do more but…

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 […]

On Ideology, economics and the compatibility of Chartalists and Austrians

On Ideology, economics and the compatibility of Chartalists and Austrians

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?

On Recent Positive Economic Data and Other Links

On Recent Positive Economic Data and Other Links

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 […]

Why The World Is Headed For A Balance Sheet Recession

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 […]

The origins of the next crisis

The origins of the next crisis

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 […]

The Central Bank as “Deal of the Last Resort”?

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 […]

Links: 2010-03-07 – Comparing job losses, China’s workers and more

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 […]

Quote of the day: William White and inflation

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 […]