What causes inflation and why do central banks allow it to persist instead of having a 0% inflation target. Photo by Aaron Burden In this episode you’ll learn: How inflation erodes purchasing power over time.How money creation by banks causes inflation.What is the non accelerating inflation rate of unemployment.How shorter-term rates influence longer-term rates.Why central banks have inflation targets. Show Notes Did Quantitative Easing Work? - Federal Reserve Bank of … [Read more...]
82: What Assets Return When The Fed Raises Rates
How have various asset classes performed when the Federal Reserve begins tightening by raising short-term interest rates. Photo by Joe Wessells In this episode you'll learn: How interest rates have declined over the decades.What determines interest rates.What are different measures of inflation.How long after the first Federal Reserve begins raising its policy rate have recessions begun.What have stocks, bonds and other asset categories returned one year after the Federal Reserve … [Read more...]
MNY074 Plus: The Fed and Public Stock Offerings
This week's Money For the Rest of Us Plus episode discusses the recent Federal Reserve Bank decision not to raise its short-term policy rate. I also answer a question regarding the public offering of stock by companies. The episode length is 14 minutes. … [Read more...]
MNY051Plus: Why Are Interest Rates So Low?
In this week's Money For the Rest of Us Plus episode, I discuss What are equilibrium real rates of interest and why they are important. How does the Federal Reserve decide when to raise short-term interest rates. Why has the equilibrium real rate of interest been so low and what influences it. The episode length is 15 minutes. … [Read more...]
How Have Bonds Performed Prior To and After The First Federal Reserve Policy Rate Increase
This audio lesson shares the performance of various bond sectors in the three months prior to and the three months after the first Federal Reserve policy rate change. The episode length is 8 minutes. … [Read more...]
