High hopes for global economic growth in 2014 have been dashed by still-declining growth and inflation, and outright global deflation is becoming more likely. The policy measures enacted thus far to reinvigorate the economy are not working, and policymakers have expressed no clear idea about what to do next.
We welcome you to join us as a panel of economists discuss US wage and price prospects in the coming months and the implications for the Federal Reserve’s current unorthodox monetary policy.
Most views that relate economic classes with monetary policy seem mistaken as a result of looking at monetary policy the wrong way. Almost all of us share an interest in avoiding and escaping economic slumps; it’s just that we disagree about how to do so.
As shown by these recent quotes from The Wall Street Journal, we are getting used to the idea that interest rates can be negative. So why did so many economists assert confidently for years that nominal interest rates could not go below zero– that there was a “zero bound,” as they said?
The financial crisis has changed the mechanics of monetary policy. When economic growth improves to the point that the Federal Reserve finally decides to increase short-term interest rates, it will need a new approach to do so.
The celebration of the US economy’s second-quarter growth “rebound” to 4 percent will be short. The headline number’s strength exaggerates the growth pace. It would be dangerous if this number speeds up Federal Reserve tightening.
The average growth rate of the first half of 2014 was 0.95 percent, quite a lot weaker than the 3 percent pace expected early in the year by the Fed and most analysts and is actually pretty close to stall speed.
We welcome you to join us for a panel discussion of the undersea military competition occurring in Asia and what it means for the United States and its allies.
AEI’s Election Watch is back! Please join us for two sessions of the longest-running election program in Washington, DC.
We welcome you to join us at AEI for a discussion of what’s next for the Common Core.
Please join AEI for a discussion examining each candidate’s platform and prospects for victory and the impact that a possible shift toward free-market policies in Brazil might have on South America as a whole.