Category Archives: Macroeconomic policy

The Media Endlessly Talks About Interest Rates—Are They Even an Effective Economic Tool at This Point?

Interest rates are a poor substitute for fiscal spending and as we’ve seen, over-reliance on monetary policy produces speculative booms and busts. More and more people recognize this formula isn’t working, but what will it take to change course?


The EU Is Facing Gigantic Questions About Its Future That Are Hidden in Obscure Bank Policy Decisions

The ECB again rides in to try to paper over fundamental problems with the EU’s structure and to offset is austerity bias by restarting QE. But the EU needs more government spending. Will it take another crisis to get there?