tag:blogger.com,1999:blog-5713178645208582139.post1846513438153520182..comments2024-03-17T03:26:42.785-05:00Comments on Macro Musings Blog: Bruce Bartlett on What the Fed Can DoDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-5713178645208582139.post-9694750449666863412010-07-25T21:47:42.707-05:002010-07-25T21:47:42.707-05:00ECB:
In my playbook, lowering interest on reserve...ECB:<br /><br />In my playbook, lowering interest on reserves would only be one part of a broader monetary strategy. I would note, however, that contrary to Williamson's claim the stock market viewed just the potential of such a move very favorably (before being dissapointed). In other words, the market saw the move as stimulative. And if the market believes it to be so and acts upon it David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-59254953711432642732010-07-25T21:28:02.180-05:002010-07-25T21:28:02.180-05:00Stephen Williamson also chimes in
http://newmonet...Stephen Williamson also chimes in <br />http://newmonetarism.blogspot.com/2010/07/what-happens-if-interest-rate-on.html<br />Bottom line: lowering the IRR would have minimal effects.ecbnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-84181886961955492342010-07-25T21:22:49.206-05:002010-07-25T21:22:49.206-05:00The WSJ had an article on Bernanke's reasons f...The WSJ had an article on Bernanke's reasons for not lowering the IRR:<br /><br /> Lowering the interest rate it pays on excess reserves — now at 0.25% — could create trouble in money markets, he said.<br /><br />“The rationale for not going all the way to zero has been that we want the short-term money markets, like the federal funds market, to continue to function in a reasonable way,” he ecbnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-32412452810024782002010-07-23T23:19:47.673-05:002010-07-23T23:19:47.673-05:00Anonymous,
The monetary monopoly which the Fed en...Anonymous,<br /><br />The monetary monopoly which the Fed enjoys may be the fundamental problem. However, short of a transition to free banking, the Fed can help equilibrate the supply and demand for money.Lee Kellyhttp://www.criticalrationalism.netnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-54616476810115091092010-07-23T15:53:24.834-05:002010-07-23T15:53:24.834-05:00The Congress needs to think outside the box and co...The Congress needs to think outside the box and consider issuing a currency that isn't based on the creation of debt by private banks. The Fed is the problem, not the solution.Anonymousnoreply@blogger.com