Monetary Policy

Paul Krugman Doubles Down On Fiscal Expansion Claims Contradicted By Data

"Everything about recent experience," Paul Krugman says, "suggests that the world desperately needs fiscal expansion to boost demand and... that our sole reliance on central banks isn’t working." However, the "recent experience" Krugman refers to doesn’t actually back his case.

Secede And Decentralize: An Open Letter To Clinton Supporters

Dear Clinton Voters, I know this election has been painful for you. Many feel betrayed and even believe yourselves no longer living in the country you thought you were. Reflect on that pain and frustration for a moment. Now recognize how you feel now is how an equally large, possibly larger, number felt for the past eight years. Those who are of a liberty bent feel it all the time, no matter who ends up in office. Reflect on it, feel it, understand it, own it.

Markets In Turmoil: Global Bond Bloodbath, Currency Rout Accelerates As Stocks Erase Early Gains

Monday started off where Friday left off, with the dollar surge continuing, pushing the DXY above 100 for the first time since December, global bond yields soaring, emerging market currencies tumbling, and the Yuan slammed below 6.85 for the first time. However, where Monday is different is that while European stocks and US index futures started off far higher, E-minis have now faded the entire overnight rally and are now red for the session, on concerns that the spike in yields will cap any more stock upside.

Why President Trump Will Fumigate The Fed

Trump’s election has given hard money advocates the most hope in over 30 years that our nation’s failed monetary policy will be reformed. Mixed with the current hawkish wave that is already percolating in the veins of some FOMC members, Trump’s future appointments can have a huge impact on the central bank’s immediate decision-making. One can only hope that the president-elect will stick to his guns and do the right thing.

"Markets Are Grasping At Trump's Answer To The New Normal"

"Monetary policy is no longer what’s driving these moves. Increasingly, central banks see themselves in a defensive role, reacting rather than dictating trends. The greenback’s rally is already forcing Asian and Latin American central banks to protect their currencies. More such moves may be in the offing if dollar gains continue....  But for now, after growing weary of monetary-led slow growth, markets are grasping at Trump’s answer to the New Normal."

As The Dust Settles: Goldman Q&A On Life In Trumplandia

Expect the election result to increase policy uncertainty, warns Goldman Sachs, as a result of an increased pace of legislative action in 2017 without clarity, so far, regarding which issues the administration will prioritize. Over the near-term, much will depend on how financial conditions respond to the policy positions of the new administration. Despite today’s favorable market reaction, investors may take a dimmer view on proposals to raise tariffs or otherwise restrict international trade.