monetary policy, normalization, Federal Reserve, Fed, 2008 financial crisis

Ten years after the 2008 financial crisis we are again facing the possibility of economic turmoil as the Fed and other central banks exit their unconventional monetary policies by raising interest rates and shrinking their balance sheets. Although central banks will move gradually, unforeseen circumstances could trigger…

asset bubbles, Great Recession, inflation targeting, monetary policy, NGDP targeting

In the first, 1922 edition of Money, his own now-classic primer on monetary economics, the great Dennis Robertson included a chapter he called "Money in the Great Muddle," about the blow World War I dealt to England's once (relatively) rock-solid monetary system, and to other monetary arrangements…