AEI.Org: Scholar: Vincent R. Reinhart

When the Fed Was Boring

Thu, 29 Oct 2009 00:00:00 +0100

Sometimes people ask if I miss working for the Federal Reserve. Perhaps if it continues expanding its fiefdom.

The Peril of Anointing a Favored Financial Few

Wed, 14 Oct 2009 00:00:00 +0100

The Obama administration's financial reform package hits the trifecta of bad policymaking.

Pluck of the Irish

Fri, 25 Sep 2009 00:00:00 +0100

The finance minister of Ireland announced a plan to ransom the hostage economy. Others should follow suit.

Surprises in Store

Wed, 26 Aug 2009 00:00:00 +0100

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.

Is There Scope for Fiscal Stimulus for Debt-Intolerant Countries?

Sat, 22 Aug 2009 00:00:00 +0100

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.

The Perfect Financial Storm Fallacy

Fri, 31 Jul 2009 00:00:00 +0100

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.

Simple Rules for a Complex Financial World

Thu, 30 Jul 2009 00:00:00 +0100

Complexity has been the bane of our financial system for decades and cannot be the solution going forward.

When They Were Young

Thu, 16 Jul 2009 00:00:00 +0100

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.

The High Cost of Getting the Story Wrong

Tue, 02 Jun 2009 00:00:00 +0100

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.

To Change Policy, Change the Law

Thu, 26 Mar 2009 00:00:00 +0100

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.

Why Congress Will Kill the Bank Rescue

Wed, 25 Mar 2009 00:00:00 +0100

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.

The Nationalization Paradox

Thu, 12 Mar 2009 00:00:00 +0100

Americans are rightly skeptical of bank nationalization. But we might need to proceed anyway.

Playing Down the Price Tag of the Fiscal Stimulus

Tue, 10 Feb 2009 00:00:00 +0100

The Obama administration's plan seems designed to keep its current footprint on the budget as small as possible.

Preemptive Strikes Against Inflation

Wed, 28 Jan 2009 00:00:00 +0100

There are two reforms that could help the Fed avoid inflation when the crisis passes.

Is the U.S. Too Big to Fail?

Mon, 17 Nov 2008 00:00:00 +0100

The special status of the United States is unlikely to dissipate soon, but it is breeding growing international resentment.

Beware of Europeans Bearing Proposals

Thu, 13 Nov 2008 00:00:00 +0100

Calls for international financial cooperation are picking up.

The Fed's Big Experiment

Mon, 03 Nov 2008 00:00:00 +0100

America has embarked on one of the boldest ventures in the history of monetary economics.

From Capital Flow Bonanza to Financial Crash

Thu, 23 Oct 2008 00:00:00 +0100

If the pattern of the past few decades holds true, emerging market economies may be facing a darkening future.

A Bill That Deserved to Pass

Mon, 06 Oct 2008 00:00:00 +0100

Henry Paulson has been granted broad authority to purchase troubled assets. Now it is time for him to buy, buy, buy.

Fixing the Fix

Wed, 24 Sep 2008 00:00:00 +0100

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.

How Three Economists View a Financial Rescue Plan

Mon, 22 Sep 2008 00:00:00 +0100

The Bush administration is working with Congress to fill in the details of its plan to stabilize the financial markets.

Secretary Paulson's Double-Dog Dare

Wed, 17 Sep 2008 00:00:00 +0100

Market participants will be speculating on the next bailout--where will it stop?

Secretary Paulson Makes the Right Call

Tue, 16 Sep 2008 00:00:00 +0100

Lehman's shadow was not long enough to justify a bailout.

Messages from Merrill's Misfortunes

Tue, 05 Aug 2008 00:00:00 +0100

Last week's big announcement by Wall Street investment giant Merrill Lynchcontains dark warnings about our economic future.

Risky Business

Wed, 23 Jul 2008 00:00:00 +0100

With Fannie and Freddie, is the government mistaking a "first-generation" crisis for a "second-generation" crisis?

Securitization and the Mortgage Mess

Fri, 18 Jul 2008 00:00:00 +0100

Regulatory reforms aimed at preventing future housing bubbles should be crafted with caution.

The Perils of Paulson

Tue, 15 Jul 2008 00:00:00 +0100

Over the past year, Treasury secretary Henry Paulson and Federal Reserve chairman Ben Bernanke have moved from crisis to crisis, improvising as they go.

Fallout from a Bailout

Thu, 22 May 2008 00:00:00 +0100

Only two months ago, mortgage aid was viewed as unlikely, but the odds now favor it becoming law.

Behind the Food-Price Riots

Fri, 18 Apr 2008 00:00:00 +0100

The problem of rising foodstuff pricesis worsened by a monetary policy in overdrive,exchange-rate chaos, unsound market interventions, and high oil prices.

Peter Pan Goes to Wall Street

Wed, 16 Apr 2008 00:00:00 +0100

Participants in the subprime mortgage market had a "Never-Never Land" attitude. Nowthey must clean up the mess.

Our Overextended Fed

Wed, 26 Mar 2008 01:00:00 +0100

The recent actions by the Federal Reserve to save Bear Stearns will leave a lasting imprint on the financial landscape.

The Fed's New Alphabet Soup

Mon, 24 Mar 2008 01:00:00 +0100

Federal Reserve officials have effectively rewritten the rules on the role of a central bank in a market economy.

This Time Is Different: Eight Centuries of Financial Folly

Thu, 29 Oct 2009 10:00:00 +0100

No Way Out: Government Response to the Financial Crisis

Fri, 09 Oct 2009 11:00:00 +0100

Do Money Market Funds Have a Future in the New Financial System?

Tue, 05 May 2009 10:00:00 +0100

Can the IMF Really Save the World?

Tue, 21 Apr 2009 09:00:00 +0100

The 2009 State of the Union: Change and Continuity

Tue, 13 Jan 2009 14:00:00 +0100

What Lies Beyond the Credit Crunch? Part III

Thu, 02 Oct 2008 14:00:00 +0100

Will the Global Economy Turn Down?

Mon, 21 Jul 2008 14:00:00 +0100

Is the Federal Reserve on the Right Track?

Mon, 16 Jun 2008 14:00:00 +0100

What Lies Beyond the Credit Crunch? Part II

Mon, 28 Apr 2008 14:00:00 +0100

What Is Fair Value Accounting and Why Are People Concerned about It?

Tue, 08 Apr 2008 15:00:00 +0100

The 2008 State of the Union

Mon, 28 Jan 2008 08:30:00 +0100

What Lies Beyond the Credit Crunch?

Mon, 17 Dec 2007 14:00:00 +0100

Dealing with Crises in a Globalized World

Fri, 25 Sep 2009 00:00:00 +0100

A presentation by Vincent R. Reinhart exposing the problems of modern economic practice.

Containing a Systemic Crisis: Is There Really No Playbook?

Thu, 24 Sep 2009 00:00:00 +0100

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.

Origin and Propagation of the Financial Crisis

Fri, 31 Jul 2009 00:00:00 +0100

A presentation on the origin of the financial crisis, the downturn, policy missteps, and policy opportunities.

For Best Results: Simplify

Thu, 23 Jul 2009 00:00:00 +0100

Facilitating resolution, simplifying rules, and consolidating regulators will go a long way in making financial firms more transparent.

Monetary Policy in a Low-Interest-Rate Environment

Sat, 13 Jun 2009 00:00:00 +0100

For the Federal Reserve, a low-interest-rate environment means quantitative easing because the federal funds rate has already been effectively brought to zero.

Comments on "The Default Puzzle: Underwriters and Sovereign Bond Markets, ...

Fri, 12 Jun 2009 00:00:00 +0100

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 Benefits of Playing Well

Fri, 08 May 2009 00:00:00 +0100

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.

The Governance, Communication, and Conduct of the Federal Reserve's Monetary Policy

Fri, 29 Feb 2008 00:00:00 +0100

Market participants do not appreciate the changes made by the Federal Reserve and the Federal Reserve does not like applying difficult lessons from textbooks.

Capital Flow Bonanzas

Mon, 08 Sep 2008 00:00:00 +0100

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.

Capital Inflows and Reserve Accumulation: The Recent Evidence

Tue, 18 Mar 2008 01:00:00 +0100

There are major policy initiatives to counter pressure to appreciate the exchange rate.

Getting the Story Right

Fri, 11 Sep 2009 00:00:00 +0100

Three AEI scholars discuss the financial crisis and the misguided policies that led to it.

False Notes from the Fed, the Treasury, and the SEC

Tue, 22 Jul 2008 00:00:00 +0100

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.

Fallout from a Bailout

Thu, 29 May 2008 00:00:00 +0100

Only two months ago, mortgage aid was viewed as unlikely, but the odds now favor it becoming law.

Stern Lessons on Fed Policies and Actions

Tue, 01 Apr 2008 01:00:00 +0100

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.