Markets

Far Too Low for Far Too Long

by JW Mason So, what caused the economic and financial crisis of 2007-whenever? It’s an open question. Presumably we’ll continue to argue about it until the next crisis (or until the Moon Men invade.) But right now let’s talk about one possible story, or really family of stories: that the root cause of the crisis is that interest rates were too low for too long. This is often taken to be a conservative view; one of its more prominent exponents has been John Taylor, who complained last week in in the Wall Street Journal that the Fed has returned to its discretionary, unpredictable ways, and the results are not good. Starting in 2003-05, it held interest rates too low for too long and thereby encouraged excessive risk-taking and the housing boom. Rortybomb’s favorite conservative Fed preside...

Vacation is all I’ve ever wanted, until April 12th.

And with that, on vacation until April 12th.  Belated honeymoon.  Heading to Amsterdam, Copenhagen, Stockholm, Oslo and Reykjavik.  Anyone have any tips on things to do in those cities?  Can I approach them like how I approach cities in the United States – find a neighborhood with things I like and then just wander around?  Any recommendations for books to read while traveling by train through social democracy? (Mental note: find way to sneak away from honeymoon to interview Reykjavik officials on their massively successful mortgage debt reduction plan.) [embedded content] As Terry Tate would say, just because this blog is on vacation doesn’t mean it’s out to lunch.  Friend of the blog JW Mason of the Slack Wire economics blog will be doing guest blogging.  Social media the hell out of his...