A Global Monetary Plague [electronic resource] : Asset Price Inflation and Federal Reserve Quantitative Easing /
Brown, Brendan.author.
The Great Monetary Experiment designed and administered by the Federal Reserve under the Obama Administration unleashed strong irrational forces in global asset markets. The result was a “monetary plague” which has attacked and corrupted the vital signalling function of financial market prices. This book analyses how quantitative easing caused a sequence of markets to become infected by asset price inflation. It explains how instead of bringing about a quick return to prosperity from the Great Recession, the monetary experiment failed in its basic purpose. Bringing about economic debilitation, major financial speculation, waves of mal-investment in particular areas, and a colossal boom in the private equity industry, the experiment instead produced monetary disorder. Brendan Brown puts the monetary experiment into a global and historical context, examining in particular Japanese “folklore of deflation” and the Federal Reserve’s first experiment of quantitative easing in the mid-1930s. The author couples analysis from the Austrian school of monetary economics and Chicago monetarism with insights from behavioral finance, and concludes with major proposals for the present and the future, including ideas for monetary reform in the United States, and suggestions for how investors can survive the current market “plague”. .
Description based upon print version of record.
Includes bibliographical references and index.
The monetary origins of market irrationality -- How Fed quantitative easing spread asset price inflation globally -- A 100-year history of Fed-origin asset price inflation -- How to cure deflation phobia? -- A manifesto for US monetary reform -- Japanese tales in the mythology of Fed quantitative easing -- How the Roosevelt Fed's quantitative easing ended in a crash -- A guide to surviving a monetary plague.
The Great Monetary Experiment designed and administered by the Federal Reserve under the Obama Administration unleashed strong irrational forces in global asset markets. The result was a “monetary plague” which has attacked and corrupted the vital signalling function of financial market prices. This book analyses how quantitative easing caused a sequence of markets to become infected by asset price inflation. It explains how instead of bringing about a quick return to prosperity from the Great Recession, the monetary experiment failed in its basic purpose. Bringing about economic debilitation, major financial speculation, waves of mal-investment in particular areas, and a colossal boom in the private equity industry, the experiment instead produced monetary disorder. Brendan Brown puts the monetary experiment into a global and historical context, examining in particular Japanese “folklore of deflation” and the Federal Reserve’s first experiment of quantitative easing in the mid-1930s. The author couples analysis from the Austrian school of monetary economics and Chicago monetarism with insights from behavioral finance, and concludes with major proposals for the present and the future, including ideas for monetary reform in the United States, and suggestions for how investors can survive the current market “plague”. .
Board of Governors of the Federal Reserve System (U.S.)
Finance—History.
Financial engineering.
Finance, Public.
Macroeconomics.
Economic history.
Financial History.
Financial Engineering.
Public Finance.
Macroeconomics/Monetary Economics//Financial Economics.
Economic History.