Monetary Policy
Leading posts from August include Preston McSwain's call for more honest and accurate fee disclosures and performance reporting; an examination of Sam Zell's take on the economy by Julie Hammond, CFA; tips on how to ace job interviews by Julia VanDeren; Will Ortel's exploration of what's in a hedge fund name; and an analysis of capital markets during times of war by Mark Armbruster, CFA.
The first question Sam Zell asks when someone offers up an investment opportunity is “Where’s the demand?"
In this reprint of a collection of lectures, the Nobel Prize–winning author expounds on regional and international regulation and monetary and fiscal policy, as well as a host of other economic topics. His insights predate but point toward the recent global financial crisis, and his guidance is timely and critical for a global economy still facing the fallout from the crisis.
Back in the 1980s, “monetary policy was a great way to stimulate the economy,” Jack Ablin, CFA, said. Not anymore.
In a sweeping survey of the financial crises that shook East Asia and other developing countries, the author explores the compatibility of emerging market economies with inherently volatile global financial markets.
It was just shy of two weeks since President Donald Trump’s inauguration when former US Federal Reserve chair Ben Bernanke took to the podium at the CFA Society Boston’s 31st Annual Market Dinner. His presentation covered a broad range of topics, from the current state of macroeconomics, regulation, and policy, to financial stability and the geopolitical climate at large. John Bowman, CFA, shares a few key takeaways from his speech and the subsequent question-and-answer session.
Recently, there has been a global movement toward eliminating cash, Ron Rimkus, CFA, observes. It sounds strange, almost bizarre. Who exactly wants to eliminate cash? Why? What would we do without it? Rimkus explores these questions as well as the most critical one of all: Is it good for his mom?
In this fascinating study of the Federal Reserve System, Peter Conti-Brown shows that much of what investors know about the formulation and implementation of US monetary policy is wrong. He also demonstrates that much of the expert commentary in the media (e.g., regarding future interest rate actions) proceeds from false premises about the central bank’s internal dynamics. Although practitioners should not accept all of Conti-Brown’s conclusions uncritically, they can assuredly profit from his debunking of conventional wisdom about a key driver of the financial markets.
The central bankers' ongoing romance with negative interest rates is perhaps the most important story of 2016. Ron Rimkus, CFA, provides his year-end roundup and looks ahead to 2017.
Think about the markets since the financial crisis. What has defined the era? Two words: monetary policy. Central banks — more than economic growth or any other factor — are what have moved the markets. But that may be changing.