The only economic theory which anticipated the recession is the Austrian school. While it has gotten more press recently, most people do not have an understanding of Austrian theory. Steven Horowitz has published a working paper for the George Mason Mercatus Center which explains the current recession in Austrian terms. It is concise and easy [...]
Bruce Bartlett on why the stimulus isn’t stimulating - yet (via Forbes):
Since 60% of the stimulus package had a multiplier effect of less than one, only 40% of the package went to programs like public works that have a high multiplier. Moreover, the programs with a low multiplier were the fastest ones to implement; those [...]
Alan Greespan takes to the pages of the FT to call for a new stock market bubble:
Global stock markets have rallied so far and so fast this year that it is difficult to imagine they can proceed further at anywhere near their recent pace. But what if, after a correction, they proceeded inexorably higher? That [...]
The Federal Open Market Committee decided today to maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period.
FOMC Policy Statement:
Information received since the Federal Open Market Committee met in April [...]
