tag:blogger.com,1999:blog-5713178645208582139.post1668588171070735806..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: Dollar Domination, Robot Monetary Overloads, and Closing the AD GapDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-5713178645208582139.post-13457715402270590012017-05-13T13:07:11.328-05:002017-05-13T13:07:11.328-05:00AD falls when money flows decline. M*Vt = AD, and...AD falls when money flows decline. M*Vt = AD, and AD is a proxy for the subset, N-gDp. Vt falls when savings are bottled up and idled in the payment’s system. I.e., contrary to every modern day economist, commercial banks pay for their new earning assets with new money, not existing deposits, or short-term debt. See "The Economist": <br /><br />"Because one person’s spending is Salmo Truttahttps://www.blogger.com/profile/13910212017849902362noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-55402288050012131412017-05-13T07:56:08.756-05:002017-05-13T07:56:08.756-05:00Unless that Nominal Potential GDP is calculated fr...Unless that Nominal Potential GDP is calculated from the employment statistic and GDP and you are just extracting the employment statistic signal back out?Benoit Essiambrehttps://www.blogger.com/profile/09777196965771952105noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-65622904441606051792017-05-13T07:52:43.243-05:002017-05-13T07:52:43.243-05:00Woah, that last graph fits stunningly well for thi...Woah, that last graph fits stunningly well for things that are independently and noisily measured.<br /><br />I didn't think it was possible in macroeconomics, to get empirical results that are this good.Benoit Essiambrehttps://www.blogger.com/profile/09777196965771952105noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-45268145846784213872017-05-12T19:23:26.693-05:002017-05-12T19:23:26.693-05:00As per the BIS, roughly %60 of forex volume includ...As per the BIS, roughly %60 of forex volume includes $USD, so %70 of global GDP makes sense. Source: http://www.bis.org/publ/rpfx16fx.pdf<br /><br />Within an economic context, the Federal Reserve is truly the most powerful institution on the planet, currently. Yellen is likely to raise in June so long as the stock market, jobs, and inflation remain stable, which they have been (notice she/the Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-68285188163384090842017-05-12T11:43:57.180-05:002017-05-12T11:43:57.180-05:00I'm also a fan of that statistic.I'm also a fan of that statistic. Johnhttps://www.blogger.com/profile/01457388998903348000noreply@blogger.com