Events might be teaching a tutorial on the steep price of cheap money. …One purpose of the low rates was to send a flood of money into the increasingly frothy stock market… The Fed’s balance sheet of government and government-guaranteed assets, by which it nudges down interest rates, ...
It’s true that he questioned whether the increase in the money stock resulting from open-market purchases had been effective, but that would relate only to Hetzel’s second criterion–lack of a monetary explanation of the Depression highlighting the role of the Fed as opposed to the ...
While it’s true that the huge stock of currency now in the hands of the public (likely held mostly abroad not in the US) would continue to provide a buffer against inflationary or deflationary fiscal shocks, the demand for currency is likely not very responsive to changes in interest rates...
is a level of finance that is already a further step removed from simple loans/moneylending. We can imagine Aristotle becoming even more indignant about such things. Indeed, we findThomas Jeffersonfrequently complaining about "stock jobbers" (i.e. stock brokers), and fury over "speculators" bec...
I don’t think economists should be in the business of making unconditional forecasts. An example of an unconditional forecast would be a prediction of a stock market collapse. To me, that is just superstition. So I don’t hold it against him that Friedman failed to predict the current ...
Bnindeis came down from lioston, and in a speech at Cooper Union prophesied that that company must fail, PREFACE vii Leading bankers in New York and Boston were heartily recommending the stock to their customers. Mr. Brandeis made his prophecy merely by analyzing the published figures. How ...
"I feel sorry for you." "Don't feel sorry for me, let me tell ya'." She had plans for Michele right from the start. Bad ones. A visit to Carolyn Picot's Grave in the ever so important Find-a Grave Virtual Cemetery at first made Michele feel sorrier than ever. She even cried...
they seem to have goofed. Ed DeBartolo, having been repaid the money he had lent for the Allied deal, decided on another fling, a risk equivalent to trying bungee jumping twice. He lent a Campeau Corp. subsidiary $480 million and received 7.5% of Federated's stock -- Campeau held the...
Friedman insisted that the Great Contraction started as a normal business-cycle downturn caused by Fed tightening to quell stock-market speculation that was needlessly exacerbated by the Fed’s failure to stop a collapse of the US money stock precipitated by a series of bank failures in 1930, ...
Thus, in Friedman’s view, dollar undervaluation and sterling overvaluation implied a US trade surplus and British trade deficit, causing gold to flow from Britain to the US. Under gold-standard “rules,” the US money stock and US prices were supposed to rise and the British money stock an...