Economy & Market

by Charles Biderman,
published in THE MARKET, 31.08.2020
What that means today is that the Federal Reserve, the US central bank, can increase or decrease the amount of money available to buy financial assets and increase or decrease the cost of money via changing interest rates. More money at lower interest rates creates higher stock prices. Less or even the same amount of money plus higher interest rates creates lower stock prices.

by Charles Biderman,
published in THE MARKET, 07.09.2020
The Wall Street Journal’s Heard on the Street column recently opined: «Milton Friedman’s famous dictum that ‹inflation is always and everywhere a monetary phenomenon› is hard to square with the Fed increasing the monetary base by 460% since 2008 with little discernible effect