The Federal Reserve is buying mortgage-backed securities and has stated it will keep interest rates low until unemployment falls. The Bank of Canada under Mark Carney likewise made an explicit promise about how long rates would be held down, and Carney is now bringing this practice to the Bank of England. The European Central Bank, led by Mario Draghi, has refined how it communicates its interest- rate intentions.
Central bankers should adopt a clear policy goal, such as the path for nominal gross domestic product, to make remaining easing options more effective under the limits of near-zero interest rates, according to Michael Woodford, a professor of political economy at Columbia University.
The two Mexican couriers were hauling a tractor-trailer full of cash: $3 million collected for drugs sold on the streets of Chicago. Juan Gonzalez and David Zuniga were driving their rig through Indiana in October 2011, transporting the money to Mexico. As they stopped to fix a flat tire, three members of the Gangster Disciples, Chicago’s biggest street gang, held them up at gunpoint.