|Janet Yellen As Fed Chair — What Does It Mean for Investors?
Dr. Janet Yellen is a Keynesian and monetary dove. According to her writings, her speeches, and now her confirmation hearing, she believes that the U.S. economy is not operating at capacity, and that Federal Reserve activities can improve economic activity to make it operate much more close to its potential capacity.
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What Are China’s Future Reforms and Are They Enough?
The current central committee of the Chinese Communist Party just completed its third plenum. In the past, third plenums have been events where notable reforms have been enacted — much of China’s robust growth after the regime of Mao can be attributed to reforms that were implemented after the third plenums of two different central committees, in 1978 and 1993.
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Jobs That Aren’t Coming Back
Unemployment has remained stubbornly high during the recovery that has followed the Great Recession. This high unemployment, as we noted above, is a fundamental concern of the incoming chief of the Federal Reserve, to the point where the Fed’s dual mandate — maximal employment and stable prices — seems at least rhetorically to be tipping decisively in favor of labor. Janet Yellen is not alone among economists in giving particular attention to the long-term unemployed and the potentially severe social consequences of their plight.
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