Federal Reserve Chairman Ben Bernanke is trying out a new communication strategy that has the potential to dramatically change the outlook for the economy. The idea: By telling people more about its longer-term plans, the Fed can stimulate the economy even when interest rates are as low as they can go.
The discovery of a spreadsheet error in an influential study by Harvard University economists Carmen Reinhart and Kenneth Rogoff inevitably raises a troubling question: To what extent can we trust what any researcher claims to be true?
Presidential candidate Mitt Romney says he will get the U.S. government’s finances in order and make life better for business. It’s a classic Republican pitch, but to what extent does it correspond to what he might really do as president?
My colleagues Justin Wolfers and Betsey Stevenson provocatively argue that Representative Paul Ryan, the Republican Party's de facto spokesman on economic policy, is "an inflation nutter" because he is concerned that future budget deficits may lead to rapid price inflation.
President Barack Obama plans to nominate Janet Yellen as the next chairman of the Federal Reserve Board. In doing so, he will promote the pre-eminent policy economist of her generation to the role of the most powerful central banker in the world.
Spoiler alert: The “fiscal cliff” will be resolved. At the 11th hour, saner heads will prevail, a deal will be struck, and the U.S. Congress will steer the economy away from its date with destruction. Congressional compromise will ensure that the scheduled tax increases and spending cuts are pared back and phased in only gradually.
The world will be paying close attention tomorrow when the Federal Reserve announces the results of its two-day policy-making meeting. The big question is what, if anything, the announcement will communicate.
The discovery of an error in an influential research paper by Harvard University economists Carmen Reinhart and Kenneth Rogoff has sparked an academic firestorm. It’s time to sort through the wreckage.
Try as he might, Federal Reserve Chairman Ben S. Bernanke can’t seem to get the market to understand the central bank’s plans. The problem might be less his communication skills than what he’s trying to communicate.