Risks facing central banks: action and inaction

Unlike Fed policy in the 1990s, central bank actions this century do not appear overly accommodative, writes Andrew Smithers The aims of economic policy are broadly agreed, with success defined as brisk growth combined with low and stable levels of unemployment and...

Interesting Times

We Live in Interesting Times.  The Stock Market’s Response to Changes in Commercial Banks’ Reserves.  Recent Experience.   The US stock market has moved since mid-2020 with changes in the level of commercial banks’ reserves with the Federal Reserve, as Chart...

Improving Economic Policy

World Economics • Vol. 24 • No. 2 • April–June 2023 Key Points The consensus model (CM) holds that there is only one equilibrium that needs to be maintained for economic stability. This follows, as a matter of logical necessity, from the model’s fundamental...