Why is the Fed Pushing Interest Rates Higher? — Paul Jay interviews Gerald Epstein

Video and transcript

TripleCrisis
Why is the Fed Pushing Interest Rates Higher?

Paul Jay interviews Gerald Epstein, Professor of Economics at University of Massachusetts, Amherst

Flassbeck vs. Krugman on hot money — Paul Jay interviews Heiner Flassbeck

But what is absolutely clear but is not mentioned by most economists, not even by a person like Paul Krugman, whom I like very much for many of his assertions, but he is not saying, well, flexible exchange rates do not work. But this is the fact and this is the core of the matter.

Real-World Economics Review Blog
Flassbeck vs. Krugman on hot money
Paul Jay interviews Heiner Flassbeck

Cardiff Garcia — Paul Tucker on the carry trade

"Hot money" flows resulting from free flow of capital.

The Financial Times — FT Alphaville
Paul Tucker on the carry trade
Cardiff Garcia

Edward Harrison explains the carry trade and swap lines

The Carry Trade and Fed Swap Lines

Bottom line: the Fed is stuck at permanent zero and that means the carry trade is on. If we did have another panic, those swap lines would be handy because the Fed would again become the global lender of last resort.