Cecchetti on Recent Fed Policy Changes

(Via David Beckworth at Macro and Other Market Musings, April 11:

Previously I discussed how much of what you learned in your money and banking class is now outdated given the many policy innovations by the Federal Reserve since last summer. Stephen Cecchetti now has a nice summary of these innovations that can be found here (shorter version) or here (longer version). Read these updates and you will be current on the workings of the Federal Reserve.

I too find Cecchetti to be a good go-to source on where things stand and where we may be heading—barring bad politics, too-intense lobby pressures, and host of other interferences that seem to get in the way of "Economics Dreams".

Speaking of Money and Banking "learning" being outdated, consider this from Kevin Quinn at Econospeak, April 9

It is scandalous that nowhere in what passes for mainstream macroeconomics will you find anything that helps you understand what Hyman Minsky called "financial fragility" - the inherent instability of the credit system - and the implications for the real economy. No models - nothing!! - Nothing in a macroeconomics textbook that would aid in understanding the current crisis, and countless previous cises in the history of capitalism….

Comments

[bailey]

There's a fitting adage I first heard applied to the French Revolution - first the decision is made, then the facts are gathered. Today I can't help but wonder when this first refected the reasoning of the day? Have a great weekend.