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.
Tag Archive for Monetary Policy
Contributors- Economic and Financial, Must Read
The Media Makes and Changes History – Frederick J. Sheehan
by Frederick Sheehan • • 0 Comments
“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.
Contributors- Economic and Financial, Must Read
The Circular Logic Behind Scott Sumner’s Claim That the Fed’s Policy is Contractionary – L. Randall Wray
by Devin Smith • • 0 Comments
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:
Contributors- Economic and Financial, Must Read, Taken Down
Who benefits from the Fed’s decision? Sober Look
by Sober Look • • 0 Comments
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 …
Money Morning, Must Read
Another Big Fed Week: The Bernanke Monetary Policy Testimony to Congress – Money Morning
by Tony Daltorio • • 0 Comments
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.
Charts, Contributors- Economic and Financial, Economics, Lee's Free Thinking, Must Read, Taken Down
Other central banks impacting US money supply
by Lee Adler • • 0 Comments
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.
Contributors- Economic and Financial, Must Read
It’s All in the Flows – Frederick J. Sheehan
by Frederick Sheehan •
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, but not stated (in what I have read) is the major reason for such nonchalance: The Fed only acknowledges flows, not stocks. This might sound boring. It is also very…
Contributors- Economic and Financial, Must Read, Taken Down
Low money multiplier does not justify ultra easy monetary policy – Sober Look
by Walter Kurtz • • 0 Comments
This is a syndicated repost courtesy of Sober Look. To view original, click here. Reposted with permission. Follow the money. Find the profits!Liquidity is money. Regardless of where in the world that money originates, eventually it flows to and through Wall Street. So if you want to know the direction of the next big moves…
Contributors- Economic and Financial, Must Read, Taken Down
Financial fragmentation across the Eurozone can not be ended by extending ECB credit to periphery governments
by Walter Kurtz • • 0 Comments
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…
Contributors- Economic and Financial, Must Read, Taken Down
US consumer spending has been surprisingly brisk
by Walter Kurtz • • 0 Comments
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…
