John H. Makin is a resident scholar at the American Enterprise Institute (AEI) where he studies the US economy, monetary policy, financial markets, corporate taxation and banking. He also studies and writes frequently about Japanese, Chinese and European economic issues.
Makin has served as a consultant to the US Treasury Department, the Congressional Budget Office, and the International Monetary Fund. He spent twenty years on Wall Street as the chief economist, and later as a principal of Caxton Associates a trading and investment firm. Earlier, Makin taught economics at various universities including the University of Virginia. He has also been a scholar at the Bank of Japan, the Federal Reserve Bank of San Francisco, the Federal Bank of Chicago, and the National Bureau of Economic Research. A prolific writer, Makin is the author of numerous books and articles on financial, monetary, and fiscal policy. Makin also writes AEI's monthly Economic Outlook which pairs insightful research with current economic topics.
Makin received his doctorate and master’s degree in economics from University of Chicago, and bachelor’s degree in economics from Trinity College.
Many major world economies are at risk of slipping from a period of falling inflation (disinflation) into outright negative inflation (deflation), and the eurozone is leading the trend. The European Central Bank and Fed in particular must strive to avoid this outcome by striking a balance between continuing quantitative easing and tightening monetary policy.
Chairman Campbell, Ranking member Clay, and members of the committee I am pleased to offer testimony on practices of central banks since the great financial crisis of 2008. While the last 5 years has been a very challenging period for all central banks, a review of practices and outcomes will...
The monetary cliff, or US potential to slip into a period of negative inflation (deflation), is more threatening than the fiscal cliff the United States faced earlier this year. Fed Chairman Ben Bernanke and soon-to-be chairman Janet Yellen should make deflation avoidance a more clearly stated Fed objective.
Fannie Mae and Freddie Mac are reporting profits, but remain wards of the state, and although Ben Bernanke was the chief financier of the crisis, the post–Bernanke world will begin on January 31, 2014. What then? These and other relevant issues will be addressed by our expert panel.
Hitting the debt ceiling means that government spending gets cut by about 20 percent. Congress has not yet grasped how awful these overnight cuts will be for the already-weak economy. The debt ceiling scare needs to be managed while Congress stumbles toward an agreement on spending and borrowing. Failing this, we’re heading for a nasty recession.
Households and firms face more policy uncertainty today than at any time since the mid-2011 debt-ceiling fiasco that sent the S&P 500 swooning by 20 percent over a period of three weeks. The slower Congress and the Fed are in taking action to reduce uncertainty, the more likely a 2014 recession becomes.
Although the Fed’s original purpose was primarily to provide liquidity during financial crises and ensure a low and stable rate of inflation, it is now expending more energy on targeting lower unemployment and higher growth. Monetary policy, however, is ill-suited to achieving these goals.
At this event, Fed policy experts will discuss the leadership challenges facing the next Fed chair, including continuing or ending quantitative easing, dealing with systemic risk, addressing the effects of the Fed’s actions on other countries, and meeting the Fed's statutory mandates for stable prices, employment, and moderate long-term interest rates.
The global finanacial crisis destroyed over one-fifth of accumulated American wealth in just one year: 2008. That huge loss was on top of a significant 1.62 percent wealth loss in 2007. Both the US stock market bubble burst in 2000 and the housing bubble implosion of 2008 contributed to the current situation, reinforcing the need for a Federal Reserve "bubble watch" program.