Tag Archive for Money Supply

Rotation out of money market funds – where is the cash going?- Sober Look

This is a syndicated repost courtesy of Sober Look. To view original, click here. Reposted with permission. Investors are fleeing dollar-based money market funds. After the spike in cash holdings from taxable income “harvesting” at the end of 2012 (see discussion), the assets in money funds have declined sharply. Source: ICI What’s causing this decline?…

Why has the US broad money supply flat-lined in 2013? – Sober Look

This is a syndicated repost courtesy of Sober Look. To view original, click here. Reposted with permission. The US money indicators have been showing something odd in the last few months. While the monetary base (M0) has been rising sharply due to increasing bank reserves (the liability side of the Fed’s balance sheet), the broader…

Low money multiplier does not justify ultra easy monetary policy – Sober Look

This is a syndicated repost courtesy of Sober Look. To view original, click here. Reposted with permission. An number of readers responded to the post (here) on growth in US monetary base with “so what?” After all the so-called “money multiplier” has been at historical lows – meaning that the Fed’s monetary expansion has not made…

Counterparties: Central banks warn about central banks | Felix Salmon

The BIS annual report is out, and you probably won’t read a more depressing economic brief this year. The gruesome details: Global economic growth in advanced economies was halved last year, to 1.6%, amidst an “abysmal fiscal outlook”; we have “a global banking system that is still dependent on economic support”; bank credit spreads are…