Under this latter scenario, the Fed is not monetizing government debt — it is simply managing the supply of the monetary base in accordance with the goals set by its dual mandate.

The government increased payments to individuals without reducing spending elsewhere in the budget.

All five peripheral EU countries face burdensome public debt and budget deficits, but the causes for uncertainty in each country?s situation differ.

The rise in the national debt... is entirely a consequence of the federal government’s increase of expenditures without an offsetting increase in revenues.

Economic theory predicts that fast growth can lead to high saving rates if people lack financial institutions that allow them to borrow.

In response to volatile market conditions, the G-7 financial authorities announced late on March 17 that they would jointly intervene the next day to reduce the value of the yen, citing concerns about “excess volatility and disorderly movements.” The yen immediately depreciated and traded...

But because this [Chinese] exchange rate policy is externally focused and relies heavily on regulations, which restrain normal market forces, it is reasonable to say that the policy constitutes currency manipulation for purposes of gaining an advantage in trade.

Would financial markets and the economy have been better off if the Fed pursued a policy of quantitative easing sooner?

Experience demonstrates that raising reserve requirements is surely not the best way to eliminate excess reserves.