Tag Archive for Interest Rate

Ben Bernanke’s Blog: Interest Rate Confusion

Former Federal Reserve Chairman Ben Bernanke has a lot more free time on his hands now that he’s no longer in charge of messing around with the US economy. Since leaving the Fed, Bernanke has been a Distinguished Fellow in Residence at the Brookings Institution in Washington, DC. Yesterday, Bernanke began posting at his new blog on Brookings’ website. In his first post he engaged in a bit of wishful thinking, stating that “Now that I’m a civilian again, I can once more comment on economic and financial issues without my words being put under the microscope by Fed watchers.” His words may not be parsed anymore, but they certainly will be examined. It is Bernanke’s second post, on interest rates, that requires some attention. It’s a fascinating insight into Bernanke’s thinking and makes you realize just why the Fed’s monetary policy is so screwed up.

Inflation Expectations Rising?

According to Reuters, investors are beginning to pour more money into Treasury Inflation-Protected Securities (TIPS). These are special Treasury bonds that are designed to protect investors against inflation risk. Granted, part of the reason for the increase could be that in the current zero interest rate environment there is a constant search for greater yield,…

Central Bankers for Financial Stability

Given the long history of governments and central bankers driving their currencies to destruction through relentless inflation, many people both within and without the Austrian School of Economics would view “Central Bankers for Financial Stability” if not as an outright joke, then at least as a prime candidate for the world’s smallest and most exclusive…