Category Archives: Banking industry

Yet Another Glaring Flaw With Trump Infrastructure Plan: Dependence on Vagaries of Tiny, Slow-Moving Tax Equity Market

The oh-so-clever Trump plan to use tax credits to fund infrastructure spending means it will be too small and slow to provide any real boost.

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Doves, Hawks… and Pigeons: Why Central Bankers Favour Monetary Policy Inertia

The discussion of the delayed lift-off in US monetary policy is just the latest episode in a long-lasting debate over the causes of inertia in monetary policy. This column approaches the issue by assuming that psychological drivers can influence the decisions of central bankers. Loss aversion is one source of behavioural bias which can explain delays in changing the stance of monetary policy, including the fear of lift-off after a recession.

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