Bank Negara Malaysia does not publish the minutes to its Monetary Policy Committee meetings, unlike the Federal Reserve in the United States. This keeps the rationale behind rate-setting decisions murky to outsiders sometimes. A few economists in the past several years have bugged the governor on the matter. Acquaintance Jason Fong from RAM Ratings yesterday asked Zeti whether BNM […]

This is truly a bonked up world. Sometimes it is as if humanity as a whole does not really know what it really wants. No, what it wants, what the market wants, is to have its cake and eat it too. Ever since quantitative easing became orthodox monetary policy, signals have been mixed up that […]

[2685] Austrian alert!

Managing imbalances and rising indebtedness under a low interest rate environment Very low interest rates have now prevailed for a number of years and appear to be likely to continue for the foreseeable future. Given the duration of the easing period, a key question is whether monetary policy can still be considered as being counter-cyclical […]

How do you write Scott Sumner Day in Japanese? Haruhiko Kuroda Day? The BOJ said it changed the target for money-market operations from the overnight call rate to the monetary base — cash in circulation and the money that financial institutions have on deposit at the central bank. It predicts the measure will grow to 270 trillion yen […]

A currency war is inevitable in the era of quantitative easing (QE). While the long-standing assertion by major central banks that the exchange rate is not a policy tool is pretty much true, there is a well-understood link between monetary policy and the strength of a currency. It is no mystery that the market expects […]

I am a supporter of regionalism. Despite whatever jokes I may have about the euro, I do not want to see its disintegration. While I have refined my opinion by stressing on the importance of having similar economies coming into a union instead of having a disparate set of economies with wildly different setups and […]

I do not understand the intricacies of Japanese politics. I simply do not follow it closely. But I do know that Japan can play a significant role in Asia, if it finally decides to take up that role, which it has not under the uncertain leadership of the Democratic Party of Japan. The DPJ wanted […]

In the olden days when four-legged beasts were the best mode of land transportation, gold was money. Everyday transactions involved gold and other precious metals as the medium of exchange then, just as paper money now dominates transactions in the modern economy. Gold had a very special position in human culture then due to its fundamental […]

The United States Federal Reserve has come under criticism for its third round of quantitative easing – or QE3 – from many countries, especially emerging ones, who are concerned it will lead to the creation of asset bubbles that will cause problems within their economies. What will be the effect of this QE3 on Singapore’s […]

[2596] Today is Scott Sumner Day

Yes, it is. I haven’t seen anyone else say it yet, so I will.  The Fed’s policy move today might not have happened — probably would not have happened — if not for the heroic blogging efforts of Scott Sumner.  Numerous other bloggers, including the market monetarists and some Keynesians and neo Keynesians have been […]

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