economist

What is the Fed taper? An economist explains how the Federal Reserve withdraws stimulus from the economy. Tapering refers to the Federal Reserve policy of unwinding the massive purchases of Treasury bonds and mortgage-backed securities it’s been making to shore up the economy during the pandemic. The unconventional monetary policy of buying assets is commonly known as quantitative easing. The Fed first adopted this policy during the 2008 financial crisis. Normally, when a central bank wants to reduce the cost of borrowing for companies and consumers, it lowers its target short-term interest rate. But with its target rate at zero during the 2008 crisis – at the same time that there was no inflation and the economy was still hurting – the Fed was no longer able to cut rates further. And so...

The U.S. transportation sector is one of the largest contributors of carbon dioxide, the potent driver of climate change. A ‘green’ symbol for electric vehicle charging stations. Photo by Michael Marais for Unsplash, CC BY-ND Transportation accounts for about 28% of total U.S. greenhouse gas emissions and, since 1990, emissions in this sector have increased more than in any other area. Reducing greenhouse gas emissions by encouraging the use of electric vehicles promises to be an effective strategy to address climate change. That’s because the electric grid is powered by diverse sources, including an increasing amount of renewable energy such as wind and solar. But with more than 270 million motor vehicles registered in the U.S. and a long tradition of powering cars and trucks with foss...

Tag: economist

An Economist Explains What Is The Fed Taper And How The Federal Reserve Withdraws Stimulus From The Economy

An Economist Explains, Can A Future Ban On Gas-Powered Cars Work?