Edward Hadas is a former economics editor at Reuters Breakingviews and also worked at the Financial Times as assistant editor of the Lex column. Before becoming a journalist, he worked for 23 years as an equity analyst in Europe and the United States. He has written a book, "Human Good, Economic Evils: A Moral Approach to the Dismal Science" (ISI Books, 2007), and is a visiting senior fellow in the School of Management and Social Sciences at St. Mary's University, London. Edward has degrees from Columbia University, Wadham College, Oxford and the State University of New York at Binghamton.
As the Federal Reserve and ECB get ready to loosen policy, their armouries look depleted. Modern monetary theory suggests the cost and quantity of money matter less than putting it in productive hands. How? With targeted financial regulation and fruitful government spending.
Investors are rushing into high-grade bonds even though long-term yields are falling. Real returns will be acceptable if disinflation persists. But that’s a big if. More active use of fiscal policy or worsening trade frictions could reverse a trend that’s lasted nearly 40 years.
The social network could muscle into the fast-growing but competitive payments business. But founder Mark Zuckerberg appears to want to start a new currency. That’s crazy. A company with data-control issues is more likely to fall apart than break the government-bank money nexus.