By: spencer
The FED wouldn’t have been able to target N-gDp during the Great Inflation unless they changed their operating procedure. The banksters simply usurped the trading desks’ “open market power”. The effect...
View ArticleBy: spencer
re: “the economy seems to be re-accelerating:” Retail MMMFs are nonbanks. Mises has it right: “The definition of M2 includes money market securities, mutual funds, and other time deposits. However, an...
View ArticleBy: dtoh
Peden, 1. There’s not going to be much evidence (at least statistically significant evidence) regarding this issue so I think the lack of evidence is not a valid argument. 2. Hysteresis can be pretty...
View ArticleBy: Todd Ramsey
“Todd, I think the Fed has to do this.” Won’t it have to be Treasury, replacing some of the current debt issues with NGDP securities? The NGDP security market has to be massive. Otherwise finance pros...
View ArticleBy: spencer
The FED’s technical staff conflates micro with macro. Thus, they can’t differentiate how the system works. From the standpoint of the system, banks don’t lend deposits. Bank-held savings have a zero...
View ArticleBy: William Peden
dtoh, 1. A lack of evidence for particular departures from the NRH, given at least some work in pursuit of that, is positive evidence for the NRH. I agree it’s far from conclusive evidence and I agree...
View ArticleBy: ssumner
People seem to have short memories, as I’ve gone over the NRH dozens of times. To reiterate, it’s just as likely that if the NRH is false then we should lower the NGDP target, and thus reduce the real...
View ArticleBy: dtoh
Scott, Just like there is monetary offset to fiscal policy, there can be legislative offset to monetary policy. There is no reason to think that the legislated rates of taxation on capital income don’t...
View ArticleBy: stoneybatter
Scott, you said “I think the Fed has to do this [create a NGDP security market].” Given Treasury already issues TIPS, do you not think it is more feasible/likely that they could issue securities...
View ArticleBy: ssumner
dtoh, Maybe, but given the gridlock in DC, how long will that take? Stoneybatter, If the Fed’s not making the market, it would lack liquidity. There’s little interest in NGDP securities unless the Fed...
View Article