Monetary policy is contractionary. Despite $120 billion per month in ongoing quantitative easing "QE" and zero percent interest rates, monetary policy is still contractionary. How can this be true?

It is no secret that we have been fighting inflation that reached a 40-year high and the Federal Reserve Bank has embarked on a historic interest rate increase to combat inflation. Not only have they ...

Since the federal funds rate peaked at 22% in the early 1980s, inflation in the United States has remained low and stable, leading many to believe that the mere threat of renewed interest-rate hikes ...

The government charges the Federal Reserve with maintaining sustainable economic growth, high employment and stable prices. To achieve these goals, the Fed constantly monitors the economy, either ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Using flow of funds and high frequency data from the Investment Company Institute, we study the effects of monetary policy shocks on the size of non-bank assets as well as on flows into long-term ...