Evaluating QE2

On June 30 The Wall Street Journal published a chart titled “QE2:  A Quantitative Assessment.”  It commented on QE2 and showed how various economic and market metrics fared over the course of the program. The question of QE2’s impact is an important one, for a variety of reasons.  This impact is especially important as I …

Read more

Milton Friedman On The Fed’s Ability To Control Interest Rates

On February 14 I wrote a post highlighting Milton Friedman’s “Free to Choose” television series of 1980. From time to time I plan on commenting on various material contained therein as much of it is highly relevant to issues we are currently encountering. His following comments are particularly noteworthy given today’s economic environment and intervention …

Read more

Alan Greenspan On Impact Of QE2

Recently Alan Greenspan wrote a paper titled “Activism.” (pdf)   While I don’t agree with many of its analyses and conclusions, I am finding it to be an interesting document. On March 4, CNBC interviewed Greenspan.  I found one response by Greenspan to be especially notable.  The question happens at the 42 second mark: interviewer:  …

Read more

QE2’s Effectiveness

This post is an update to that of December 9, 2010, “Measuring QE2 Effectiveness.” There are many different ways one could use to gauge whether QE2 is successful.  Of great significance, I am not aware of any official statement that specifically states the goals (and metrics of such) of QE2. However, lowering of interest rates, …

Read more

Ben Bernanke’s Speech And Q&A On February 3, 2011

I could comment extensively on Ben Bernanke’s speech and Q&A at the National Press Club yesterday, as I partially and fully disagree on many of the comments he made.  I find it unfortunate that official transcripts of this and previous Q&A sessions are not available.  (speech video and transcript;  Q&A video and partial transcript) One …

Read more

Quantitative Easing Exit Issues

During QE1 (the first round of The Federal Reserve’s Quantitative Easing) there seemed to be substantial commentary and discussion concerning the exit of such a program. Over the last few months the discussions over the exit strategy seem to have diminished greatly – despite the start of QE2 and speculation of additional QE programs, i.e. …

Read more

Measuring QE2 Effectiveness

In announcing QE2 in their November 3 FOMC meeting, the statement contained the following excerpt: “Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. Currently, the unemployment rate is elevated, and measures of underlying inflation are somewhat low, relative to levels that the Committee judges to be consistent, over …

Read more

Ben Bernanke’s December 5 2010 “60 Minutes” Interview – Comments

Ben Bernanke gave his second interview to “60 Minutes” last night. This interview is very notable in many respects.  I could make extensive comments on various aspects of the interview, as I continue to have vast differences of opinion with many of Ben Bernanke’s stated comments and analyses.   For now I will make some …

Read more

Ben Bernanke November 6, 2010 Remarks On QE2

On Saturday (November 6) Ben Bernanke took part in a panel discussion.  This was part of The Federal Reserve conference “A Return to Jekyll Island: The Origins, History, and Future of the Federal Reserve.” I found these comments, pertaining to QE2, to be highly notable: Ben Bernanke: “There is not really, in my mind, as …

Read more