How the Federal Reserve Broke the American Economy
Author: Christopher Leonard
Publisher: Simon and Schuster
Category: Business & Economics
"The New York Times bestselling business journalist Christopher Leonard infiltrates one of America's most mysterious institutions--the Federal Reserve--to show how its policies over the past ten years have accelerated income inequality and put our country's economic stability at risk"--
Evolution of the Global Financial System to the Great Bubble Burst
Author: Vivek Kaul
Publisher: SAGE Publications India
Category: Business & Economics
The second book in the Easy Money trilogy discusses how the global financial system evolved in the aftermath of the First World War and how that finally led to the dot-com crash in the United States, in the early 2000s. It gives an overview of how in the aftermath of the First World War, Europe was in major trouble. The book also analyzes how the United Kingdom of Great Britain, which was once the premier nation of the world, lost out to its former colony, the United States of America. The dominance of the United States led to its currency, the dollar, becoming the international reserve currency. This led to the United States having an exorbitant privilege which it still continues to have. Over the years, this exorbitant privilege has led to many financial crises in different parts of the world. It has also been responsible for the current financial crisis as well. The book concludes with the wisdom of the legendary investor Warren Buffett, who was deemed to be a failure, during the heydays of the dot-com bubble, when his investment company Berkshire Hathaway could not generate the stupendous returns that dot-com stocks had been generating. Nevertheless, in the end, it was Buffett who had the last laugh. As he wrote to his shareholders: “But a pin lies in wait for every bubble.” The lessons of the dot-com bubble bursting were never really learnt, and soon the same mistakes would be made again.
Capitalism and interest are inseparable, yet over the centuries whenever interest rates have collapsed and money was too easy, financial markets have become unstable. In the first two decades of the twenty-first century, interest rates have sunk lower than at any time in the five millennia since they were first recorded. In an unprecedented move, negative interest rates were introduced in Europe and Japan, causing trillions of dollars' worth of bonds to trade at negative yields. Monetary policymakers appear blithe to the unintended consequences of their actions. Yet given the essential function of interest in determining how capital is allocated and priced, and its role in regulating financial risk, it is not clear that capitalism can thrive or even survive under these conditions. With clarity and precision, Edward Chancellor traces the history of interest from its origins in ancient Mesopotamia, through debates about usury in Restoration Britain and John Law's ill-fated Mississippi scheme to the global credit booms of the twentieth century. The Price of Time reveals how extremely low interest rates not only create asset price inflation but are also largely responsible for the weak economic growth, rising inequality, elevated debt levels, and pensions crises that have afflicted Western economies in recent years. At the same time, easy money in China has inflated an epic real estate bubble, accompanied by the greatest credit and investment boom in history. The global financial system is edging closer to yet another devastating crisis.
The first book of the next crisis. *Longlisted for the 2022 Financial Times Business Book of the Year Award* All economic and financial activities take place across time. Interest coordinates these activities. The story of capitalism is thus the story of interest: the price that individuals, companies and nations pay to borrow money. In The Price of Time, Edward Chancellor traces the history of interest from its origins in ancient Mesopotamia, through debates about usury in Restoration Britain and John Law ' s ill-fated Mississippi scheme, to the global credit booms of the twenty-first century. We generally assume that high interest rates are harmful, but Chancellor argues that, whenever money is too easy, financial markets become unstable. He takes the story to the present day, when interest rates have sunk lower than at any time in the five millennia since they were first recorded - including the extraordinary appearance of negative rates in Europe and Japan - and highlights how this has contributed to profound economic insecurity and financial fragility. Chancellor reveals how extremely low interest rates not only create asset price inflation but are also largely responsible for weak economic growth, rising inequality, zombie companies, elevated debt levels and the pensions crises that have afflicted the West in recent years - conditions under which economies cannot possibly thrive. At the same time, easy money in China has inflated an epic real estate bubble, accompanied by the greatest credit and investment boom in history. As the global financial system edges closer to yet another crisis, Chancellor shows that only by understanding interest can we hope to face the challenges ahead.
Hearings ... Eighty-seventh Congress, Second Session, on H.R. 12080: A Bill to Permit Domestic Banks to Pay Interest on Time Deposits of Foreign Governments at Rates Differing from Those Applicable to Domestic Depositors. July 10, 16, 17, and 18, 1962
Author: United States. Congress. House. Committee on Banking and Currency
Eight leading economists discuss the recent history of monetary policy and its effects on the economy. Rejecting the Bank's high-interest, hard-money approach, this revised edition explains the benefits of a more moderate strategy. Contents: 1 A Brief History of Government Borrowing in Canada 2 The Canadian Fiscal Problem 3 Four Decades of Deficits and Debt 4 Recent Canadian Monetary Policy 5 The Debt and Canada's Social Programs 6 Some Myths about Monetary Policy 7 Social Policy, Macro Policy and the Debt 8 Business Cycles and Economic Growth 9 Credibility Mountain