tag:blogger.com,1999:blog-5713178645208582139.post6544165269299331388..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: Musings on June's FOMC MeetingDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-5713178645208582139.post-4785346004741998322017-06-16T20:23:47.978-05:002017-06-16T20:23:47.978-05:00I'm not sure that changes in interest rates ar...I'm not sure that changes in interest rates are the right way to measure the impact of the program. If it were really, really stimulative, then long term rates are more likely to rise, aren't they? billnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-38421566136619794182017-06-16T05:44:18.154-05:002017-06-16T05:44:18.154-05:00DB--Well, I guess I cannot prove that QE helped de...DB--Well, I guess I cannot prove that QE helped demand, though I think it did. <br /><br />But, if what you say is true, I come back to an interesting point. If QE is merely neutral in terms of demand and inflation…why not pay down the national debt?<br /><br />Why not have Fed do as they have done in Japan, and cut national debt in half? <br /><br />Even worse, what is the point in the Fed Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-89446649753449020732017-06-15T09:23:11.590-05:002017-06-15T09:23:11.590-05:00QE1 mattered to the banking system more than anyth...QE1 mattered to the banking system more than anything bc the asset swap from long duration bonds to cash + excess reserves liquified a frozen money market. @pinebrookcaphttps://www.blogger.com/profile/04516814415245350163noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-17096026167541736602017-06-15T09:03:18.141-05:002017-06-15T09:03:18.141-05:00Ben, to be clear, I am not saying QE had no effect...Ben, to be clear, I am not saying QE had no effect. Studies that have looked at QE find on the high end that the Fed's QE programs lowered 10 year treasury yield about 100 bps. But the 10-year yield fell from a high of about 5.525% before the crisis to a low of about 1.4%. The Fed's part was not that important and that is assuming the high-end estimates are correct. If we move on to the David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-226712757368050142017-06-15T07:49:26.494-05:002017-06-15T07:49:26.494-05:00Great post.
Kevin Erdmann over at Idiosyncratic ...Great post. <br /><br />Kevin Erdmann over at Idiosyncratic Whisk notes that inflation minus shelter, food and energy is running at 0.6% YOY. Basically, property zoning has been propping up housing inflation, but that might have run its course. Also note China capital not entering US property as much due to Beijing capital controls. Vancouver Canada house prices down 25%. <br /><br />Spooky time.Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.com