The Federal Reserve, everyone agrees, can boost growth in the short run. But can it do it over the long run? This once heretical concept is the latest argument in favor of the Fed taking its time about raising interest rates.
Legislating a rule doesn’t do away with discretion, Greg Ip says, but makes it more likely discretion will be exercised only after the rule has failed, perhaps at great economic cost.
Helicopter money merges QE and fiscal policy while, in theory, getting around
limitations on both. If this sounds too good to be true, it’s because usually it
is. That doesn’t mean it ought to be taboo, Greg Ip says.
If workers lose their jobs to imports and central banks can’t bolster domestic spending enough to re-employ them, a country may be worse off, Greg Ip explains