Archived site. This is an independent restoration of material previously published on independentstockanalysis.com. It is not affiliated with, endorsed by, or operated by any organisation named on these pages, and the content is historical — it is not current information. About this archive

NGDP vs Helicopters

Following two days of trading lower, the precious metals complex opened sharply down today before rebounding to this point.  Chess’s take this morning.

“Chicago Federal Reserve Bank President Charles Evans on Tuesday reiterated his support for the U.S. central bank’s bold new push to lower borrowing costs and boost the so far “disappointing” recovery, and said the Fed should do even more.”  Reuters

ISA readers are aware of NGDP (nominal GDP targeting) looks to be the next policy response in the toolkit.  The Fallacy of Nominal GDP Targeting at Financial Sense.

Column: Why not drop money out of a helicopter?  “The Federal Reserve should give people free money. People would spend this money, increasing demand for goods and services, causing employers to hire additional workers to meet this increased demand and reducing unemployment in the economy overall.”  USA Today  Yes, Virginia, in the mainstream USA Today as a serious idea.

Morgan Stanley: QE3 Not Enough to Help Equities, Look For QE4 at Barron’s.