Below are a set of questions for John Taylor. These will frame the discussion tomorrow at our event in New York City. We have about 150 clients attending - it should be a lot of fun. The format will be the same as our previous events with Marty Feldstein, Ken Rogoff...
The 10yr Treasury yield is back to unchanged on the year. And the 30yr Treasury yield is now UP almost 20bps on the year. At the same time the Fed has introduced a $200b+ second round of operation twist, and an unlimited third round of quantitative easing. The Fed has...
Suppose the funds rate, throughout its 100 year history, averaged 10 percent. And further assume it had never been below 7 percent, even in the worst of economic times. In this make-believe world the Fed had many times eased to 7 percent as a recession hit, but after...
QE is NOT good for the long-end of the bond market. Rather than buying duration to front run the FED, with kneejerk precision, as was done initially after the QE1 and QE2 announcements, the market now fully understands that balance sheet expansion is inflationary....
I was nervous this morning. Would there be electricity? Would there be riots on the streets? Would the ATM work? Had the dike system started cracking? Would there be lines at every bank with angry men in viking hats, pig tails and swords demanding wads of Kroner? I...
I was nervous this morning. Would there be electricity? Would there be riots on the streets? Would the ATM work? Had the dike system started cracking? Would there be lines at every bank with angry men in viking hats, pig tails and swords demanding wads of Kroner? I took a deep breath, got off the […]
