Federal Reserve Bank of Chicago
September 25, 2009
A presentation by Vincent R. Reinhart exposing the problems of modern economic practice.
Federal Reserve Bank of Chicago
September 24, 2009
A presentation by Vincent R. Reinhart on the problem of resolving systemic risk and difficulty regulators face when deciding if an institution is insolvent or a victim of panic.
Three AEI scholars discuss the financial crisis and the misguided policies that led to it.
President Obama's decision to reappoint Chairman Bernanke is the right one for markets. It may still be the wrong choice for Obama's policy agenda.
Developed economies are implementing massive fiscal stimulus packages, but fiscal multipliers are not certain, financing budget deficits will not be easy, the risk of default looms, and central bank independence may be eroded.
Calling what has happened over the past two years a "perfect storm" treats problems in financial markets as if they were imposed from outside by a force of nature.
A presentation on the origin of the financial crisis, the downturn, policy missteps, and policy opportunities.
Complexity has been the bane of our financial system for decades and cannot be the solution going forward.
Facilitating resolution, simplifying rules, and consolidating regulators will go a long way in making financial firms more transparent.
Why look back to the last time that Timothy Geithner and Larry Summers "saved the world"? Because they are doing it again in the same way.
For the Federal Reserve, a low-interest-rate environment means quantitative easing because the federal funds rate has already been effectively brought to zero.
Before the dominance of rating agencies, investment banks had the responsibility for signaling sovereign creditworthiness by supporting after-issuance market-making in that debt.
The narrative first written about the Great Depression was wrong in many important respects. Likewise with today's crisis, the initial narrative is badly mistaken. And it will cost us dearly.
The Federal Reserve will be overburdened and subject to political pressures that may change its current structures and powers and call its inflation resolve into question.
Keeping the federal-funds rate low for a long time was in keeping with the Fed's dual objectives of maximum employment and price stability.
The new Public-Private Investment Program looks similar to, and faces the same technical challenges as, plans proposed by then-treasury secretary Paulson last year.
Americans are rightly skeptical of bank nationalization. But we might need to proceed anyway.
The Obama administration's plan seems designed to keep its current footprint on the budget as small as possible.
There are two reforms that could help the Fed avoid inflation when the crisis passes.
The special status of the United States is unlikely to dissipate soon, but it is breeding growing international resentment.
Calls for international financial cooperation are picking up.
America has embarked on one of the boldest ventures in the history of monetary economics.
If the pattern of the past few decades holds true, emerging market economies may be facing a darkening future.
Henry Paulson has been granted broad authority to purchase troubled assets. Now it is time for him to buy, buy, buy.
Treasury Secretary Paulson has asked Congress for $700 billion without a clear description of how it would be disbursed or a mechanism for effective oversight.
The Bush administration is working with Congress to fill in the details of its plan to stabilize the financial markets.
Market participants will be speculating on the next bailout--where will it stop?
Lehman's shadow was not long enough to justify a bailout.
Capital inflow bonanzas are troublesome for advanced economies, in which they are associated with economic crises, and for emerging markets, in which they contribute to economic vulnerability.
Last week's big announcement by Wall Street investment giant Merrill Lynchcontains dark warnings about our economic future.
With Fannie and Freddie, is the government mistaking a "first-generation" crisis for a "second-generation" crisis?
The Federal Reserve, the Treasury, and the Securities and Exchange Commission have taken actions recently that could have profound impact on the nation's financial system.
Regulatory reforms aimed at preventing future housing bubbles should be crafted with caution.
Over the past year, Treasury secretary Henry Paulson and Federal Reserve chairman Ben Bernanke have moved from crisis to crisis, improvising as they go.
Only two months ago, mortgage aid was viewed as unlikely, but the odds now favor it becoming law.
Only two months ago, mortgage aid was viewed as unlikely, but the odds now favor it becoming law.
The problem of rising foodstuff pricesis worsened by a monetary policy in overdrive,exchange-rate chaos, unsound market interventions, and high oil prices.
Participants in the subprime mortgage market had a "Never-Never Land" attitude. Nowthey must clean up the mess.
What are the implications of the Fed's actions on Bear Stearns? Four AEI scholars look closely at the evidence of what went wrong and what is ahead.
The recent actions by the Federal Reserve to save Bear Stearns will leave a lasting imprint on the financial landscape.
Federal Reserve officials have effectively rewritten the rules on the role of a central bank in a market economy.
There are major policy initiatives to counter pressure to appreciate the exchange rate.
U.S. Monetary Policy Forum
February 29, 2008
Market participants do not appreciate the changes made by the Federal Reserve and the Federal Reserve does not like applying difficult lessons from textbooks.
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