Ricardo Caballero argues that the current crisis stems from (flawed) efforts to construct safe assets out of risky assets in order to meet a surge in investor demand for safe assets. He is on to...

The large deficit projected for fiscal 2009 stunned many. It is natural to wonder how such a huge deficit could be financed. But remember one thing: the US placed $1685 billion of...

The Fed cut policy interest rates to zero, more or less. And it signaled that it hasn’t run out of ammunition even if it cannot cut rates further. Not so long as there are still financial...

For much of the most recent phase of the rolling global crisis, the dollar and the yen rose against the euro, the pound and most emerging market currencies. Some of that was a reaction to the...

There is constant talk – too much, in my view – about whether sovereign funds will come to the rescue of western financial institutions. Qatar did put a large sum of money into Credit...

My post on the G-20’s agenda can be found on the official Pittsburgh Summit blog.