Found 390 article(s) for author 'Monetary Policy'

Cohn is Getting it all Wrong on Taxes

Cohn is Getting it all Wrong on Taxes. Lawrence Summers, September 5, 2017, Opinion, “Given recent controversies, I was interested to read National Economic Council Director Gary Cohn’s answer to a “why are you staying?” question put by Stuart Varney of the Fox Business Network last week. To his credit Cohn did not back away from his reservations about the president’s response to the Charlottesville violence. He said “Look, tax cuts are really important to me. I think it’s a once-in-a-lifetime opportunity. We haven’t done tax cuts in 31 years. So, to be a part of an administration that gets something done that hasn’t been done for 31 years is enormously challenging, enormously interesting to me.” Link

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The Fed’s Next Big Set of Challenges

The Fed’s Next Big Set of Challenges. Lawrence Summers, August 25, 2017, Opinion, “I will not be attending Jackson Hole this year but I will be thinking about some of the issues under discussion. As I have written recently, I think the period going forward will be more challenging for central banks than the preceding few years. I will sleep best at night if Janet Yellen is reappointed.Link

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Dealing with Monetary Paralysis at the Zero Bound

Dealing with Monetary Paralysis at the Zero Bound. Kenneth Rogoff, Summer 2017, Paper, “Recently, the key constraint for central banks is the zero lower bound on nominal interest rates. Central banks fear that if they push short-term policy interest rates too deeply negative, there will be a massive flight into paper currency. This paper asks whether, in a world where paper currency is becoming increasingly vestigial outside small transactions (at least in the legal, tax compliant economy), there might be relatively simple ways to finesse the zero bound without affecting how most ordinary people live. Surprisingly, this question gets little attention compared to the massive number of articles that take the zero bound as given and look for out-of-the-box solutions for dealing with it. In an inversion of the old joke, it is a bit as if the economics literature has insisted on positing ‘assume we don’t have a can opener,’ without considering the possibility that we might be able to devise one. It makes sense not to wait until the next financial crisis to develop plans.Link

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Central Bankers Should’ve Been More Aggressive

Central Bankers Should’ve Been More Aggressive. Kenneth Rogoff, July 20, 2017, Audio, “Kenneth Rogoff, a professor at Harvard University, says central bankers should’ve been more aggressive during the financial crisis and that India’s demonetization was done too quickly. Prior to that, Kathy Matsui, chief Japan equity strategist at Goldman Sachs Japan, says Japanese companies are strong. Robert Shiller, a professor at Yale University, says New York City housing is more affordable than people think. Finally, New Orleans Mayor Mitch Landrieu says Washington’s stuck making the same mistakes in health care.Link

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China Could Export a Recession to Everyone Else

China Could Export a Recession to Everyone Else. Kenneth Rogoff, July 5, 2017, Video, “Soaring debt levels in China were a serious concern as the fallout of any crisis would hit everyone else, said a former International Monetary Fund (IMF) economist on Thursday. “If there’s a country in the world which is really going to affect everyone else and which is vulnerable, it’s got to be China today,” Kenneth Rogoff, economics professor at Harvard University, told CNBC’s “Squawk Box” on Thursday.Link

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One Hundred Years of Indebtedness

One Hundred Years of Indebtedness. Carmen Reinhart, June 30, 2017, Opinion, “Gabriel Garcia Márquez, the Nobel laureate novelist most famous for One Hundred Years of Solitude, was native to Colombia. Nonetheless, as a master of magical realism, Garcia Márquez would have appreciated the Republic of Argentina’s recent combination of fact and fantasy. In mid-June, the finance ministry sold $2.75 billion worth of US dollar-denominated bonds that mature in one hundred years.Link

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Lawrence Summers on Carbon Dividends, Border Tax, Trade

Lawrence Summers on Carbon Dividends, Border Tax, Trade. Lawrence Summers, June 20, 2017, Video, “Lawrence Summers, Harvard University Charles W. Eliot Professor and Former U.S. Treasury Secretary, discusses carbon dividends, a border adjustment tax, and U.S. trade agreements. He speaks with Bloomberg’s David Westin on “Bloomberg Daybreak: Americas.” (Source: Bloomberg)Link

 

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The Eurozone Must Reform or Die

The Eurozone Must Reform or Die. Kenneth Rogoff, June 14, 2017, Opinion, “With the election of a reform-minded centrist president in France and the re-election of German Chancellor Angela Merkel seeming ever more likely, is there hope for the stalled single-currency project in Europe? Perhaps, but another decade of slow growth, punctuated by periodic debt-related convulsions, still looks more likely. With a determined move toward fiscal and banking union, things could be much better. But, in the absence of policies to strengthen stability and sustainability, the chances of an eventual collapse are much greater.Link

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The Real Effects of Capital Controls: Firm-Level Evidence from a Policy Experiment

The Real Effects of Capital Controls: Firm-Level Evidence from a Policy Experiment. Laura Alfaro, June 2017, Paper, “This paper evaluates the effects of capital controls on firm-level stock returns and real investment using data from Brazil. On average, there is a statistically significant drop in cumulative abnormal returns consistent with an increase in the cost of capital for Brazilian firms following capital control announcements. Large firms and the largest exporting firms appear less negatively affected compared to external-finance-dependent firms, and capital controls on equity inflows have a more negative announcement effect on equity returns than those on debt inflows. Overall, the findings have implications for macro-finance models that abstract from heterogeneity at the firm level to examine the optimality of capital control taxation.Link

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A Tax Cut Might Be Nice. But Remember the Deficit

A Tax Cut Might Be Nice. But Remember the Deficit. N. Gregory Mankiw, June 2, 2017, Opinion, “In the debate about federal tax policy, one question looms large: Should we have a tax cut that increases the budget deficit? President Trump says he wants “a massive tax cut … maybe the biggest tax cut we’ve ever had.” But the Senate majority leader, Mitch McConnell, who is clearly worried about the growing national debt, says tax reform “will have to be revenue-neutral.” The stage is set for another Republican showdown.” Link

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