The Fed’s “full-allotment overnight reverse repurchase agreement facility” (FRFA) – a mechanism to control short-term rates (see post) – is no longer just an academic exercise.
“The Economist’s Sell Signal,” (November 30, 2013) critiqued the “The Perils of Falling Inflation,” in the magazine’s November 9, 2013, issue. “The Perils” attempted to erase history, an effort to protect the central-banking version of history from criticism.
OK, I’m flabbergasted.
I came across, and commented on, a piece by Scott Sumner a few days ago. (DID SCOTT SUMNER FIND MMT’S ACHILLES’ HEEL? ) He claimed he had proof MMT is wrong:
The FOMC’s decision yesterday to continue buying securities at the same pace moved a number of markets. But who exactly benefited from these moves (h/t George H)? Here are a few select markets.Stock investors got a nice boost and precious metals …
There’s a key market-moving event this week investors can’t miss: the semi-annual Ben Bernanke monetary policy testimony before Congress on Wednesday (House) and Thursday (Senate).
Congressional legislation known as Humphrey-Hawkins (now expired) required the Federal Reserve’s Open Market Committee to report to Congress on both the state of the U.S. economy and monetary policy twice a year (February and July). The Fed Chairman testifies before Congress in conjunction with the report.
When the Fed prints reserves by buying MBS and Treasuries with money that did not exist previously, this increases bank deposits (liabilities) and cash assets pretty much dollar for dollar. I have run charts showing this relationship, but something went wrong beginning in January.
The 2007 Federal Open Market Committee (FOMC) transcripts were released last week. Media reports have concentrated on the Fed’s forbearance during the credit meltdown. Implied,…
This is a syndicated repost published with the permission of Sober Look. To view original, click here. Opinions herein are not those of the Wall Street…
Resolving the issue of broken monetary transmission (discussed here) in the Eurozone will take more than buying periphery government bonds. David Powell from Bloomberg used the Taylor Rule to determine policy rates that would be appropriate for th…
US consumer confidence (discussed here) may end up being somewhat better than initially thought. The sentiment figures from the University of Michigan (as opposed to the Conference Board measure) actually improved in August, though remain below th…
