Ambrogio Cesa-Bianchi, Richard Harrison and Rana Sajedi Recent increases in interest rates around the world, following a multi-decade decline, have intensified the debate on their long-run prospects. Are previous trends reversing or will rates revert to low values as current shocks subside? Answering this question requires assessing the underlying forces driving secular interest-rate trends. In … Continue reading Global R*
Macroeconomic policy
The sanctions against Russia and Russia's kinetic war in Ukraine have produced great changes in and outside. But what are their implications?
The Fed’s objective is asymmetric, with inflation overshoots being more costly than undershoots. Using data from the Summary of Economic Projections it shows that the Bernanke Fed was too hawkish, the Yellen Fed was too dovish, and the Fed under Jerome Powell has at times been too hawkish and too dovish.
A deep dive into the costs and impact of the recent, large-scale European energy subsidies.
A deep dive on the development of the dollar system.
The point of the debt ceiling melodrama is to give fiscal hawks another whack at budget-cutting. Tax increase are therefore off the table.
A primer on the gold standard, including a discussion of its implications.
Russia had a budget shortfall due to a fall in energy-related tax receipts. How serious a problem is this development?
Fiscal policy can play an important role in limiting hysteresis – a term coined in the 1980s – particularly by promoting government and private investment. However, the political economy of fiscal policymaking typically trades off long-term benefits for short-term gains
Galbraith explains why conventional views of inflation are a particularly poor fit for recent price increases and produced bad policy