tag:blogger.com,1999:blog-5713178645208582139.post7201622934683263051..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: Is It Time To Eliminate Paper Currency?David Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger15125tag:blogger.com,1999:blog-5713178645208582139.post-11455102233512460812014-06-05T16:34:48.865-05:002014-06-05T16:34:48.865-05:00Benjamin, I need to read it more closely before co...Benjamin, I need to read it more closely before commenting. David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-57549701081460731662014-06-05T15:41:19.067-05:002014-06-05T15:41:19.067-05:00Cumulative monetary flows (our means-of-payment mo...Cumulative monetary flows (our means-of-payment money times its transactions rate-of-turnover), are not increasing, they have been decreasing. The 24 month moving average (of the 24 month roc), shows this. <br /><br />Bonds prices can become both cheap & expensive -depending upon how long they move in the same direction (up or down). <br /><br />This mirrors the CPI which peaked in Sept 2011 Salmo Truttahttps://www.blogger.com/profile/13910212017849902362noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-79391929310202930882014-06-04T12:01:31.910-05:002014-06-04T12:01:31.910-05:00A large part of the "underground" econom...A large part of the "underground" economy is driven by tax avoidance. If you eliminate currency, then a lot of small loans from the lower economic strata will be called in. That would not help with job creation. Salmo Truttahttps://www.blogger.com/profile/13910212017849902362noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-43885771195005640472014-06-04T02:22:59.217-05:002014-06-04T02:22:59.217-05:00I am surprised that in all these years the US has ...I am surprised that in all these years the US has never phased out a currency. They keep saying $3,000 per capita in circa, and that in Benjamin Franklins. Sure, Aunt Millie keeps $900 in her pocket.<br /><br />So, one day the Treasury says we have a really new $100, with a portrait Steve Jobs on it, and the Franklins have to be traded in for the Jobs. BTW, at the bank we will ask "How did Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-199457991825271532014-06-03T12:28:11.834-05:002014-06-03T12:28:11.834-05:00Currently we have a managed-currency system - a sy...Currently we have a managed-currency system - a system in which the volume of currency in circulation is impersonally determined by the total effective demands of the public or the amount which meets most closely the needs of trade (for the underground economy, or black market, or whatnot). <br /><br />If you redeposit currency into the banking system, you will not change the total volume of theSalmo Truttahttps://www.blogger.com/profile/13910212017849902362noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-2059902019689340532014-05-30T12:07:19.458-05:002014-05-30T12:07:19.458-05:00FT:
Electronic currency isn’t free from crime
Fro...FT:<br /><br />Electronic currency isn’t free from crime<br />From Ms Janet Tavakoli.<br />Sir, It seems to me Kenneth Rogoff’s commentary, “Paper money is unfit for a world of high crime and low inflation” (May 28), is less about deterring crime and the problems of “low” inflation – food consumers in the US know double-digit inflation – than it is about eliminating the zero bound on interest Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-60325394898340540202014-05-29T21:37:52.798-05:002014-05-29T21:37:52.798-05:00Nice read! Very informative. Did you know that? Ki...Nice read! Very informative. Did you know that? Kingfisher sets its sights on expansion beyond Europe. Full story here: http://bit.ly/SWgABA. storewars newshttp://storewars.netnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-91888181012930192762014-05-29T10:57:45.979-05:002014-05-29T10:57:45.979-05:00There is always the problem of "deferred paym...There is always the problem of "deferred payments" when using the money metric (or money flows), to match the offsetting sale of goods & services (nominal-gDp). There is also an problem with measuring the turnover of money due to sudden & disproportionate swings (in both the enlargement or reduction), of the money stock. <br /><br />The best methods to eliminate any "Salmo Truttahttps://www.blogger.com/profile/13910212017849902362noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-53816374556630143342014-05-29T10:16:30.571-05:002014-05-29T10:16:30.571-05:00Roc's in MVt = roc's in nominal-gDp (proxy...Roc's in MVt = roc's in nominal-gDp (proxy for all transactions in Irving Fisher's "equation of exchange"). I.e., the decline in money flows (real-gDp), during the 1st qtr of 2014 exhibits the identical pattern as the decline in money flows (real-gDp), during the 1st qtr of 2011. Salmo Truttahttps://www.blogger.com/profile/13910212017849902362noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-86454873768792361422014-05-28T16:17:09.052-05:002014-05-28T16:17:09.052-05:00Money flows are cumulative figures. Roc’s in short...Money flows are cumulative figures. Roc’s in short-term money flows (proxy for real-output), are always a mirror image of the seasonal economic inflection pattern (I.e., empirical evidence that roc’s in MVt = roc’s in real-output).<br /><br />First column = proxy for real-gDp. Second column = proxy for inflation:<br /><br />01/1/2014 ,,,,, 0.16 ,,,,, 0.34<br />02/1/2014 ,,,,, 0.13 ,,,,, 0.38<br Salmo Truttahttps://www.blogger.com/profile/13910212017849902362noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-21380625662953246662014-05-28T16:07:37.798-05:002014-05-28T16:07:37.798-05:00"money still matters"
Neither Dr. Paul ..."money still matters"<br /><br />Neither Dr. Paul Spindt’s “debit-weighted-money-index”, nor Dr. William Barnett’s “Divisia – aggregates”, nor the FRB-STL's "Monetary Services Indexes" (MSI) created by Dr. Richard Anderson & Dr. Barry Jones correctly define the money stock. Money is the measure of liquidity. <br /><br />The non-banks are the customers of the Salmo Truttahttps://www.blogger.com/profile/13910212017849902362noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-13877710340467442342014-05-28T15:19:28.936-05:002014-05-28T15:19:28.936-05:00Zero bound applies to interest rates - which don&#...Zero bound applies to interest rates - which don't have much to do with pumping up AD in a deleveraging environment. Before the introduction of the payment of interest on IBDDs (between 1942 & Sept 2008), the CBs always bought short term securities whenever they had excess reserve balances. This had the effect of boosting both the money stock & reserves. With a remuneration rate inSalmo Truttahttps://www.blogger.com/profile/13910212017849902362noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-89391292925081814112014-05-28T13:26:40.153-05:002014-05-28T13:26:40.153-05:00Negative interest is crazy: it makes it profitable...Negative interest is crazy: it makes it profitable to engage in negative output. E.g. I borrow at minus 10%, buy something that declines in value at 5% a year and then sell a year later at a profit.<br /><br />Only professional economists could think up a way of bringing about negative output, i.e. wealth destruction.<br />Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-48912121140020827502014-05-28T13:17:16.586-05:002014-05-28T13:17:16.586-05:00Anonymous, yes, your solution is essentially the s...Anonymous, yes, your solution is essentially the same thing as the NGDP option above. That is the one I have long advocated.<br /><br />David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-83264110623358154942014-05-28T12:31:10.826-05:002014-05-28T12:31:10.826-05:00They have never attempted to hit absolute zero, so...They have never attempted to hit absolute zero, so this complaint is bogus. <br /><br />The relationship between MB/NGDP and short rates is very robust, and is very nonlinear. If they tried to hit and keep "absolute zero" short term rates, they just might find that the monetary base goes infinite, which would solve their false "ZLB problem".<br /><br />Also, within the Anonymousnoreply@blogger.com