More voices are being added to those questioning if central banks have “exhausted” their classical tools. Mario Draghi thinks fiscal policy needs to “take change”. The Fed was forced to step into repo markets as rates jumped for banks trying to borrow money or collateral.Read More
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Judy Shelton and Christopher Waller’s nomination to the Federal Reserve board leads us to dig into their pasts for clues to their policy views. Christine Lagarde is also a newly minted nominee, up for the presidency of the ECB, and though she is not an economist, has spent some time in the monetary policy trenches.Read More
Bill Dudley gives a candid interview with the Financial Times, covering the business cycle, demographics, fiscal stimulus, the labor market, and the Phillips Curve. The ECB begins to taper, maintaining that purchases will last as long as necessary, while Jens Weidmann pushes for a specific end date.