High hopes for global economic growth in 2014 have been dashed by still-declining growth and inflation, and outright global deflation is becoming more likely. The policy measures enacted thus far to reinvigorate the economy are not working, and policymakers have expressed no clear idea about what to do next.
We welcome you to join us as a panel of economists discuss US wage and price prospects in the coming months and the implications for the Federal Reserve’s current unorthodox monetary policy.
Most views that relate economic classes with monetary policy seem mistaken as a result of looking at monetary policy the wrong way. Almost all of us share an interest in avoiding and escaping economic slumps; it’s just that we disagree about how to do so.
As shown by these recent quotes from The Wall Street Journal, we are getting used to the idea that interest rates can be negative. So why did so many economists assert confidently for years that nominal interest rates could not go below zero– that there was a “zero bound,” as they said?
The financial crisis has changed the mechanics of monetary policy. When economic growth improves to the point that the Federal Reserve finally decides to increase short-term interest rates, it will need a new approach to do so.
The celebration of the US economy’s second-quarter growth “rebound” to 4 percent will be short. The headline number’s strength exaggerates the growth pace. It would be dangerous if this number speeds up Federal Reserve tightening.
The average growth rate of the first half of 2014 was 0.95 percent, quite a lot weaker than the 3 percent pace expected early in the year by the Fed and most analysts and is actually pretty close to stall speed.
Please join AEI for a panel discussion exploring these and other questions about this crucial case.
Join Lerman, Wilcox, and a group of distinguished scholars and commentators for the release of Lerman and Wilcox’s report, which examines the relationships among and policy implications of marriage, family structure, and economic success in America.
Please join AEI for a book forum moderated by Last and featuring five of these leading conservative voices. By the time the forum is over, attendees may be on their way to discovering an entirely different — and better — moral universe.
Join us, as experts discuss their predictions for whether the United States will strike a nuclear deal with Iran ahead of the November 24 deadline, and the repercussions of the possible outcomes.
Please join Author James Grant and AEI senior economists for a discussion about Grant's book, "The Forgotten Depression: 1921: The Crash That Cured Itself" (Simon & Schuster, 2014).