This Finance survey examines (a) The Federal Reserve has begun quantitative tightening (QT) to reduce the size of its balance sheet. Fed holdings of Treasury securities have declined by $800 billion relative to the March 2020 peak. The Fed currently holds $4.9 trillion of Treasury securities, significantly larger than the $2.5 trillion holdings prior to the Covid pandemic. A reduction in Fed holdings of Treasury securities measurably increases the interest rate on long-term U.S. Treasury bonds (b) A reduction in Fed holdings of Treasury securities measurably increases volatility in the Treasury market
Keyword: interest rates
a la carte pricing abortion access to credit acquisitions Adam Smith advertising Affordable Care Act Africa agglomeration aging airline industry amateurism Amazon American Recovery and Reinvestment Act American Rescue Plan anti-competitive behavior antitrust Argentina artificial intelligence arts asset classes asset management asset purchases asset valuation assets AT&T auctions austerity automatic enrollment automation automobile industry autonomous cars
bailouts balance sheet balanced budget bank failures Bank of England bank regulation bank runs banking banking crises banking rules banking union bankruptcy banks bans behavioral economics betting Bitcoin board quotas bonds bonuses book market border adjustment tax borrowing and lending Brexit bundling business cycles buy American
cable and satellite TV California Canada cannabis cap-and-trade capital capital allocation capital budgeting capital flows capital formation capital income capital markets capital outflows capital regulation capital requirements capital stock capitalism CAPM carbon emissions carbon leakage carbon prices carbon tax carbon taxes careers CARES Act cash central bank independence central banks charitable deductions charity charter schools chief executives childrearing children China Christmas climate change climate policies climate policy climate targets clusters college admissions college athletes college tuition commercial banks commercial property commodity markets communism competition competition policy competitiveness concentration congestion congestion charges congestion pricing Congress Congressional Budget Office Connecticut constitutional amendment consumer price index consumer prices consumer protection consumer welfare consumption consumption insurance contraception conventions coronabonds Coronavirus corporate boards corporate executives corporate investment corporate performance corporate reporting corporate reproting corporate social responsibility corporate tax corporate taxes cost disease cost of capital cost of living cost-benefit analysis costs of living Council of Economic Advisors COVID-19 credibility revolution credit credit cards credit risk creditors crime crypto assets cryptocurrencies cryptocurrency Cuba culture currencies currency currency manipulation currency reserves
data data protection debt debt brake debt ceiling debt obligations debt relief debt support debt sustainability debt-to-GDP ratio default defaults defense economics deflation democratic legitimacy dependency ratio deposit insurance destination-based cash flow tax destintation-based cash flow tax Detroit developing countries developing economies development economics digital currency digital economy digital infrastructure digital markets Digital Markets Act digital service providers digital services discount rates discrimination disease diseases disruption distributional effects diversification diversity dollar dollarization dominant firms doom loops drought drug prices drug use duration dutch disease dynamic scoring
early years earnings Eastern Europe economic agents economic geography economic history economic insecurity economic integration economic performance economic performance; electoral cycles; government policy; political economy; public policy; voters economic principles economic recovery economic reseach economic stimulus Economics 101 economists education educational quality efficiency elections electoral cycles electric vehicles emerging markets empirical economics employment employment contracts employment effects employment protection energy energy policy environmental regulation equal pay equities equity equity injections equity risk premium ESG ESMA essential goods ethanol euro euro exit Europe European Central Bank European champions European Commission European recovery fund European Union Europen Union Eurozone ex-ante regulation exchange rate adjustment exchange rates exchange-traded products executive compensation expectations experiments export restrictions exports externalities extreme weather
Facebook faculty pay fairness family size Fannie Mae fast-track authority FDIC federal regulations Federal Reserve fee caps fee transparency fees fiduciary duty financial crises financial crisis financial markets financial policy financial regulation financial services financial stability finished good prices firm capabilities firm finances firm location first past the post fiscal benefits fiscal cliff fiscal councils fiscal deficit fiscal deficits fiscal policy fiscal rules fiscal stimulus fiscal sustainability floods food prices food security forecasting foreign aid foreign direct investment fossil fuels fracking France Freddie Mac free markets free movement free trade full capacity fund performance fundamental value fungibility
G7 gambling game theory gasoline GDP GDP growth gender gaps gentrification geographical mobility geopolitics Germany gift-giving global commerce global financial crisis global minimum tax global minimum tax rate global supply chains globalization gold Gold Standard Google government budget government budgets government MMFs government policy Greece greedflation green technologies green technology green transition
hard drugs health insurance health outcomes healthcare costs healthcare quality healthcare reform hedge funds high-skill workers high-skilled workers higher education hihg-debt countries holidays household finances households housing markets human capital hurricanes
ideas illegal activities immigrant visas immigration import duties import restrictions imports impossibility theorem incentives income inequality income support income tax increasing returns to scale incumbents index funds indexing industrial polic industrial policy inequality inflation inflation target inflation-indexed bonds inflation-linked bonds information infrastructure innovation input prices inside information Instagram insurance intellectual property interest rates intergenerational mobility intermediate goods intermediation international agreements international monetary system internet internet: profits investment investment management investment policy investment portfolio investment returns invisible hand Ireland Italy
labor force participation labor income labor market labor market flexibility labor markets labor productivity labor regulations labor supply Laffer curve laissez-faire land use land value tax law and economics legacy preference legal liability legalisation legislative proposals lender of last resort leverage liabilities liberal democracy licensing life expectancy life outcomes liquefied natural gas liquidity listings listings securities exchanges living standards llong-term borrowing loan relief loans local government lockdowns London long-term borrowing lotteries low-income low-income households low-skill workers LTCM Luxembourg
macroeconomic stability macroprudential policy Maine majority rule mandated disclosures manufacturing marginal tax rates marijuana mark to market market cap market concentration market efficiency market indices market microstructure market power market volatility maturity transformation maximum sustainable employment Medicaid medical debt medical research Medicare mergers mergers & acquisitions Mexico Microsoft migration minimum retirement age minimum wage minimum wage|labor market|low-skill workers|unemployment|productivity||||| mismeasurement mobility Modern Monetary Theory monetary policy money creation money market funds monopsony power moral hazard mortality mortgages museums music events mutual funds
NAFTA Nash equilibrium national security natural disasters natural gas net neutrality net zero Netherlands network externalities new entry New York Nippon Steel Nobel Prize Nobel Prize in Economic Sciences Nobel Prize in Economics non-bank financial intermediaries non-compete clauses non-tariff barriers Northern Ireland Norway nudge policies
obesity occupational choice occupational licensing offshore accounts offshoring oil prices Omicron online sales online sales tax open economies order execution output gap outsourcing overheating
panics passive investing patent trolls patents payday lending peer review pension funds pensions personal finance pharmaceutical industry physical infrastructure physical risks platforms policy advice policy entrepreneurs political appointments political economy pollution populism portfolio management portfolio theory Portugal poverty poverty reduction pre-school education prescription drugs President Biden President Obama President Trump price cap price controls price gouging primary voting private funds private schools privatization product quality production production capacity productivity professional sports teams profits prohibition property taxes protectionism psychology public corporations public debt public finances public goods public health public ownership public policy public procurement public schools public transport public utilities publishers
R&D R&D spillovers race radiospectrum random audits randomized control trials ranked-choice voting rationality real estate real wages recession recovery redemptions redistribution referendum refugees regressive tax regulation remuneration renewable energy renminbi rent control rent-seeking repatriated profits reserve currency resilience resource allocation retail retirees retirement age retirement benefits return on investment returns to education ride-sharing ride-sharing caps risk management risk-return risk-taking robots rules runs Russia
safety sales tax San Francisco sanctions savings school vouchers schools Science Scotland Scottish independence SEC secondary markets Section 230 sectoral policies security screening self-control semiconductors services shareholder value shareholders shipping short selling skills slavery small firms smartphones soccer social benefits social cohesion social costs social integration social justice social media social mobility social norms social problems social programs Social Security social welfare social/public housing sociial welfare soft drinks software industry solar energy sovereign bonds sovereign debt soverign bonds Spain speculation sports Stability and Growth Pact stablecoins stagflation stakeholders standardized tests start-ups state aid state budgets statistics steel steel industry steel tariffs sterling stock buybacks stock market stock prices stock returns strategic behavior stress tests student loans students subsidies sugar sugar tax Supplemental Nutrition Assistance Program supply chain supply chains Supreme Court surge pricing sustainability systemic risk
targeting tariffs tax avoidance tax competition tax credits tax cuts tax deductions tax enforcement tax evasion tax harmonization tax incentives tax rates tax reform tax revenues taxes taxis taxonomy taxpayer guarantees teaching tech compaies tech companies technological change Technology telecommunications terrorists Tesla test scores testing textbooks theory ticket resale TikTok time consistency Time Warner too big to fail tourism tournaments trade agreements trade balances trade barriers trade deficits trade embargo trade liberalization trade policy trade sanctions trade war trade wars trading rules training transition economies transparency transport transport networks travel travel bans Treasury bonds tulipmania TV fees twin deficits Twitter
Uber UK Ukraine uncertainty undergraduate economics unemployment unemployment insurance uninsured deposits unions universal basic income universities urban development urban neighborhoods US states US Steel US Treasuries
This week's European Economic Experts Panel statements:
A) The ECB should aim to achieve an inflation rate that averages 2% over time.
B) The ECB should take account of the environmental implications of its policy decisions.
C) The objectives set for the ECB by Treaty should make maximum sustainable employment of equal importance as price stability.
This week's US Economic Experts Panel statement:
The Fed's revised strategy to focus on employment shortfalls and a more flexible interpretation of the inflation target will make little practical difference to monetary policy outcomes over the next decade.
This week’s IGM Economic Experts Panel statement:
A ban on very short-term loans at very high annualized interest rates (aka payday lending) would make most people who use or might use them better off.
This week's IGM Economic Experts Panel statements:
A) The Fed should raise its target interest rate when it meets in mid-December.
B) The Fed should have raised interest rates sooner, rather than leaving them near zero for this long.
This week’s IGM Economic Experts Panel statement:
The Fed should wait until its preferred measure of inflation (Core PCE) is clearly rising — and not just forecast to rise — before it begins hiking interest rates.
This week’s IGM Economic Experts Panel statement:
Informed postmortems of Ben Bernanke’s Fed chairmanship will judge favorably the Fed's creative and aggressive policy initiatives from autumn 2008 through early 2009.
This week’s IGM Economic Experts Panel statement:
Conventional economic reasoning suggests that it would be a good policy to enact the recent Senate bill that would let undergraduate students borrow through the government Stafford program at interest rates equivalent to the primary credit rates offered to banks through the Federal Reserve's discount window.
This week's IGM Economic Experts Panel statements:
A: Even if the third round of quantitative easing that the Fed recently announced increases real GDP growth over the next two years, the increase will be inconsequential.
B: Even if the third round of quantitative easing that the Fed recently announced increases annual consumer price inflation over the next five years, the increase will be inconsequential.
C: Even if inflationary pressures rise substantially as a result of quantitative easing and low interest rates, the Federal Reserve has ample tools to rein inflation back in if it chooses to do so.
Compare yourself or your peers to the Clark Center Economics Experts Panel
