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There is no doubt that I believe that the Federal Reserve under the leadership of Fed Chair Janet Yellen has kept monetary conditions too tight and I have particularly blamed Yellen's 1970s style obsession with the Phillips curve for this.
This morning we got some very good news out of Egypt as this statement was released by the Egyptian central bank:
Believe it or not - there is a country in the world where I now believe that monetary policy is becoming (moderately) too easy. Yes, that is correct - I will not always say that monetary policy is too tight. The country I talk about is Sweden. More on that below.
A couple of days ago I read an interview with ECB's former chief economist Otmar Issing about the euro crisis. I frankly speaking didn't find the interview particularly interesting and Issing brings little new to the discussion.
Sunday we got some bad news, which many wrongly will see as good news - this is from Reuters:
Today Donald Trump unveiled his team of economic advisers. Interestingly enough there are very few economists among the economic advisors and only one who can be said to have any free market credentials - the Heritage Foundation's chief economist Stephen Moore.
If we look around the world there has been very few monetary policy success stories from 2008 and onwards. However, there is a success story that unfortunately largely has been untold and that is the success of monetary policy in the Czech Republic after November 2013 when the Czech central bank (CNB) decided to fundamentally to change its operational approach to the conduct of monetary policy.
I have an op-ed over at Zitamar News.
Exactly one year ago today I was with the family in the Christensen vacation home in Skåne (Southern Sweden) and posted a blog post titled The Euro - A Monetary Strangulation Mechanism. I wrote that post partly out of frustration that the crisis in the euro once again had re-escalated as Greece fell deeply into political crisis.