In 2015, the Fed decided to delay an interest rate hike several times; it was going to be the first hike in nearly ten years. The hike was initially planned to take place in June, but was then delayed. After that, September became the designated month. However, it took until December before the Fed finally used its main policy instrument.
... »Forget about Inflation, Economic Growth or Employment…the Fed Is Mostly Concerned with Stocks
February 10 2016
Edin Mujagić
Trump Would Get Away with Murder, Draghi Gets Away with Economic Nonsense
February 2 2016
Some of you might be wondering why the ECB is going to such great lengths to meet its price stability objective (2 percent inflation). Aren’t we better off when inflation is low? That is, when goods are becoming cheaper? That was one of the questions raised by ECB President Mario Draghi during his recent speech at the New York stock exchange. Not that anyone was given the opportunity to give an answer; after Draghi raised a question, he would immediately answer it himself.
... »Edin Mujagić
Department Store Gift Cards and the Modern Monetary System
January 11 2016
9.5 Million euros. That was the total value of V&D (a well-known Dutch department store) gift cards still outstanding when it applied for bankruptcy last week. Gift cards are based on a simple idea: instead of buying something at V&D yourself, you can give a person a gift card as a present
... »Edin Mujagić
The Week After: The Hidden Surprise of the ECB Press Conference
December 14 2015
Someone knocks on your front door. You answer the door, and a well-dressed gentleman stands before you. He introduces himself and tells you: “Between now and 4 or 5 years, I will visit you again. I’ll walk into your home and take at least 10 percent of the cash you have at home.” He then wishes you a great day and walks away. Keep this scene in the back of your mind as you continue reading.
... »Edin Mujagić
