Economics @ ITT

Central bank money machines fail to spur global economy

Posted in economics by ittecon on September 10, 2012

File this under “Duh!”

Economics 101 says a massive dose of easy money is supposed to be a reliable cure for a sluggish economy. For the first time in decades, the prescription isn’t working, to the rising frustration of central bankers in the U.S. and Europe.

via Central bank money machines fail to spur global economy – Economy Watch.

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Why Our Elites Dont Care About Mass Unemployment

Posted in economics, employment, macroeconomics, Policy Issues, Taxation by ittecon on August 3, 2012

The Fed is tasked with reducing unemployment and keeping inflation from running amok, and we’re in a situation with too much joblessness and too little inflation. In more concrete terms, this means that millions of people are in the worst situation of their lives—they’ve lost their jobs, their homes, and maybe even their families. Generating inflation, and encouraging people and businesses to spend money would seem like the rational response to this situation, especially since the Fed has a policy responsibility to its dual mandate, and a moral responsibility to help alleviate the tragedy of mass unemployment.

via Why Our Elites Dont Care About Mass Unemployment | The Nation.

Fed has few options as global growth slows

Posted in economics, macroeconomics by ittecon on July 25, 2012

“They [the Fed] have a hammer and they’re looking for a nail,” Alan De Rose, managing director of government trading and finance at Oppenheimer, told Reuters.

via Fed has few options as global growth slows – Economy Watch.