Modern day banking arose in fourteenth century Italy. Banca Monte dei Paschi di Siena, founded in 1472 in Siena, is currently the oldest operating bank in the world. The origins of the American banking system date back to 1780 with the founding of the Bank of Pennsylvania in Philadelphia. Its goal was to provide funding for the Continental Army that was fighting the Revoluti... Read More
Every story begins with a new chapter and on June 19, 2013 began one such story. This was the story of an impending economic collapse— that of the emerging markets (EMs). The press conference then Fed Chairman Ben Bernanke held that day will forever be etched in our memories for it caused ripples, albeit financial, across the world.
However, what were ripples in the west ... Read More
Janet Yellen cleared a crucial hurdle in her likely journey to becoming Fed Chair today: she passed her hearing before the Senate Banking Committee in a question-and-answer session that could only really be considered uneventful. Appelbaum of the NYT ... Read More
Smoothing short-term output and maintaining medium to long-term price stability is the Federal Reserve’s dual mandate. In the third quarter of the 20th century, the United States faced frequent episodes of high, volatile inflation due to such factors as natural resource price shocks and the failure to recognize that in the long run, no tradeoff exists between inflation and une... Read More
This year, as in last, I will follow the debate on Capitol Hill, sifting through the politics to illuminate the underlying economic debate. In these times of perpetual partisan bickering it is easy to overlook policy, in favor of politics.
For that reason, this blog will begin with an ode to outgoing Federal Reserve Chairman Ben Bernanke. Appointed by Republican President B... Read More