A police officer guarding the Federal Reserve building in Washington, DC: the challenge in unwinding current policies is not technical. As Fed chairman Ben Bernanke explained in February 2010, exit from quantitative easing and bloated central bank balance sheets is technically straightforward. Photograph: Andrew Harrer/Bloomberg

Since the beginning of May, monetary policy has undergone a substantial tightening. This has taken the form of a rise in the yield on the bonds of hig(...)

Federal Reserve Board chairman Ben Bernanke: in testimony to Congress last month, he noted: “The Congressional Budget Office estimates that the deficit reduction policies in current law will slow the pace of real GDP growth by about 1-1 percentage points during 2013, relative to what it would have been otherwise.” Photograph: Alex Wong/Getty Images

It is easy to find people on Wall Street who believe that the aggressive monetary policies of central banks, particularly the US Federal Reserve’s qua(...)

Breaking point: after a financial crisis, a huge excess of desired private savings is likely to emerge, even when rates are very close to zero. In that situation, immediate fiscal austerity will be counterproductive. It will drive the economy into deep recession.

In 1816, the net public debt of the UK reached 240 per cent of gross domestic product. This was the fiscal legacy of 125 years of war against F(...)

A 100 billion Zimbabwean dollar note in a country where hyperinflation is rife. The stability of inflation seems to be a reward for the credibility of inflation targeting. That gives policymakers room to risk expansionary policies.

Why are the high-income countries not mired in deflation? This is the puzzle today, not the absence of the hyperinflation that hysterics have w(...)

Bank of Japan governor Haruhiko Kuroda has launched a monetary policy revolution. He has ended two decades of caution, during which the bank declared itself helpless to end deflation.

Haruhiko Kuroda, the new governor of the Bank of Japan, has launched a monetary policy revolution. He has ended two decades of caution, during (...)