All Commentary
Tuesday, October 12, 2010

Fed Vice Chair Says Beware Low Interest Rates


“Janet Yellen, in her first public remarks as the Federal Reserve’s vice chairman, said Monday that low interest rates could give firms the incentive to take more risks and that officials must be prepared to take away the ‘punch bowl’ of monetary accommodation.” (New York Times)

And let’s not forget the malinvestments that will have to be liquidated, leading to unemployment.

FEE Timely Classic
“Interest Rates and the Business Cycle” by Glen Tenney