Categories: The Fed

One Clap for Bernanke Reappointment

Posted by: Michael Mandel on August 26

I’m a bit late to the party here, partly because I don’t view Bernanke’s reappointment as a particularly important economic event. The central bank did what it was supposed to—when…

Can the Federal Reserve stay independent?

Posted by: Peter Coy on July 06

Guest blog from Economics Editor Peter Coy Fed watchers note: Fed Vice-Chairman Donald Kohn is testifying this Thursday on the topic of Federal Reserve independence. It’s before the House Financial…

Bernanke as Lenin

Posted by: Michael Mandel on September 22

Given that Bernanke and Paulson are about to socialize risk in the financial system, it’s time to bring back the cover image from earlier this year—Bernanke as Lenin….

Is the Fed living in a fairy-tale world?

Posted by: Michael Mandel on June 25

Is the Fed living in a fairy-tale world? Unemployment is rising, housing prices are plunging, and oil prices are sky-high. Oh, yes, and consumer expectations of their future economic prospects…

Should Bernanke Keep Cutting? Yes

Posted by: Michael Mandel on April 28

We live in a boom and bust world—and it’s not the Fed’s fault. As we wait to see what the Fed does on Wednesday, one thing is clear to me:…

Lags in Monetary Policy with the TSFL

Posted by: Michael Mandel on March 11

We all know that monetary policy takes 12-18 months to have its full effect on the economy. So the first rate cut of 50 basis points in September 2007 is…

The War of Financial Innovation

Posted by: Michael Mandel on March 11

Call this the war of financial innovation. This credit crunch came about, in part, because of the misuse of new financial instruments. Now Fed Chairman Ben Bernanke is responding with…

Now we are getting serious

Posted by: Michael Mandel on March 11

The Federal Reserve announced today an expansion of its securities lending program. Under this new Term Securities Lending Facility (TSLF), the Federal Reserve will lend up to $200 billion…

What did the Fed know, and when?

Posted by: Michael Mandel on February 12

Readers of my stories and blog will know that I am obsessed with the quality of the government statistics. Very often mistakes in economic policy can be traced to data…

Why the Fed raised rates too fast

Posted by: Michael Mandel on February 11

Felix Salmon didn’t like my earlier post, “perhaps the Fed raised rates too much”. Felix writes: This is a weird argument. Subprime adjustable-rate mortgages only became popular in the first…

The Fed’s Rate Cut

Posted by: Michael Mandel on January 22

The Fed cutting rates this morning by 0.75 percentage points will help some things but not others. The central bank should be able to pump enough liquidity into the financial…

Is it a bailout?

Posted by: Michael Mandel on December 13

I’m writing the Fed chapter of my econ textbook right now, and I’m fascinated to see that the “term auction facility” has been added as a fourth tool of monetary…

Why the Fed Should Consider Cutting Rates Sooner rather than Later

Posted by: Michael Mandel on March 12

When faced with a budding financial crisis, the good central banker does a two-step dance. First, he (or she) staunches the bleeding, closing insolvent financial institutions, tightening lending standards, and…

A Good Word for Greenspan

Posted by: Michael Mandel on January 30

I write an appreciation of Alan Greenspan in my BW Online column this week. The piece starts off: I’m sorry to see Alan Greenspan go this week. Despite his age…

More on the Fed and Long-Term Growth

Posted by: Michael Mandel on October 28

First, let me say that I just reviewed Ben Friedman’s new book, The Moral Consequences of Economic Growth. People should take a look. Now onto Bernanke and what the Fed…

Will Bernanke’s Appointment Hurt Innovation and Technology?

Posted by: Michael Mandel on October 24

Right now there’s a big love-in going on, as economists on both the left and the right fall over themselves to say what a great choice Ben Bernanke is. I’m…

Greenspan’s Real Legacy

Posted by: Michael Mandel on October 24

Before entering the Bernanke era, I want to say a word about Alan Greenspan. In my opinion, Greenspan’s greatest achievement is that he showed us that central bankers didn’t have…

The Next Fed Chairman: Is Conventional Wisdom Wrong?

Posted by: Michael Mandel on October 17

As the game of guessing the next Fed Chairman goes into full gear, I heartily recommend taking a look at Rich Miller’s terrific story in the latest issue of BusinessWeek…