Economics Masters Student Association - EMSA

Putin’s Syrian Misadventure The Russian president’s bold moves have had costly repercussions for his country without making real advances against ISIS.

As a campaigning politician said a decade ago, “We shouldn’t have two different economies in America: one for people who are set for life, they know their kids and their grand-kids are going to be just fine; and then one for most Americans, people who live paycheck to paycheck.”

The American Dual Economy | Institute for New Economic Thinking Race, Globalization and the Politics of Exclusion

What Taylor and his ilk fail to understand is that the reason interest rates are wrong has little to do with the policies put in place by central bankers and everything to do with the situation that policymakers confront.

The Trouble With Interest Rates Conservative economists are wrong to accuse central banks of keeping interest rates unnaturally low. On the contrary, interest rates are higher than they should be, and central banks are doing the best they can in a difficult situation.

In short, currency risk could become a big source of turbulence in financial markets, as it was in the late 1990s (the Asian crisis) or the early 1990s (when the European Union’s Exchange Rate Mechanism broke apart).

What a carry on Monetary policy could drive currency volatility