tag:blogger.com,1999:blog-5713178645208582139.post5567904504146058423..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: Paul Krugman on Temporary vs Permanent Monetary InjectionsDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger17125tag:blogger.com,1999:blog-5713178645208582139.post-29358833993563781632018-04-15T21:47:35.538-05:002018-04-15T21:47:35.538-05:00I went to your old website address linked on top o...I went to your old website address linked on top of your comment and found much of interest but nothing new since about 2016. Please tell us how to find your new writings. By the way when you comment here under "select profile" choose "name/URL" and it will use your name rather than your world press website.Alnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-51964746840840671462018-03-10T01:04:09.729-06:002018-03-10T01:04:09.729-06:00Thanks for the post. I am very glad after ready an...Thanks for the post. I am very glad after ready and get useful information about the bonds from your blog.<br /><a href="https://www.getamec.com/" rel="nofollow">mec</a>Braden Carrollhttps://www.blogger.com/profile/08595803390999174773noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-35541225826037555942018-03-09T13:07:11.007-06:002018-03-09T13:07:11.007-06:00Fed should be incentivizing banks to make producti...Fed should be incentivizing banks to make productive (GDP-raising) investments. Incentive to horde at the Fed is probably the worst of all possible choices? Anonymoushttps://www.blogger.com/profile/07255596719303101770noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-58015439660586322532018-03-09T12:59:48.738-06:002018-03-09T12:59:48.738-06:00I really like this analysis, Bill. IOR makes very ...I really like this analysis, Bill. IOR makes very little sense in terms of productively helping the economy. <br /><br />Paying banks IOR:<br />1) incentivizes banks to just horde cash at the Fed, where it does nothing useful for the economy. Why invest in short term treasuries, when you can get more by keeping it at the Fed? <br />2) The "big banks" will now be pushing/lobbying to haveAnonymoushttps://www.blogger.com/profile/07255596719303101770noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-49689377280856064252018-03-09T12:58:31.725-06:002018-03-09T12:58:31.725-06:00This comment has been removed by the author.Anonymoushttps://www.blogger.com/profile/07255596719303101770noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-14267809712227476762018-03-05T21:48:07.148-06:002018-03-05T21:48:07.148-06:00http://ngdp-advisers.com/2018/03/04/truism-money-n...http://ngdp-advisers.com/2018/03/04/truism-money-neutral-long-run-really-true/<br /><br />I mention David Beckworth in above link...Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-6754347050486356662018-03-04T08:38:42.643-06:002018-03-04T08:38:42.643-06:00FINANCIAL BREAKTHROUGH
Life indeed is GRACE, I...FINANCIAL BREAKTHROUGH<br /><br />Life indeed is GRACE, I'am Daan Sophia currently in California USA. I would like to share my experience with you guys on how I got a loan of $185,000.00 USD to clear my bank draft and start up a new business. It all started when i lost my home and belongings due to the bank draft I took to offset some bills and some personal needs. I became so desperate and Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-84960725294596443082018-03-03T23:01:06.693-06:002018-03-03T23:01:06.693-06:00Not sure why my old website address was shown inst...Not sure why my old website address was shown instead of my name at the top of the recent comment (signed in via WordPress).<br /><br /><br />Anyway, for a first time comment it feels off. Trying via Google this time but in case it goes wrong again it should have said Ingolf Eide. Ingolf Eidehttps://www.blogger.com/profile/17200591395574835358noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-78899143128214948712018-03-03T21:25:19.865-06:002018-03-03T21:25:19.865-06:00David (and all),
The chart of the adjusted moneta...David (and all),<br /><br />The chart of the adjusted monetary base from 2008 to date seems for all practical purposes indistinguishable from yours during the late 30s to mid 40s. What remains to be seen is whether ours shrinks or eventually moves higher. In other words, the jury is still out.<br /><br />I’m inclined to agree with those who wonder about the usefulness of the permanent/temporary Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-55434988649617099562018-03-01T07:07:26.126-06:002018-03-01T07:07:26.126-06:00In a financial crisis, when unemployment spikes an...In a financial crisis, when unemployment spikes and consumer spending plummets, monetary injections won't work to boost the economy, at least not on the consumer side, as the unemployed don't spend because they don't have a job and the employed don't spend because they lack confidence that the economy will quickly recover (when times are bad, the psychology is times will always beraywardnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-20072346043270456502018-03-01T07:01:12.299-06:002018-03-01T07:01:12.299-06:00Wouldn't it make more sense to say that the mo...Wouldn't it make more sense to say that the monetary base expanded after WWII due to the inflation caused by massive deficit spending for the war effort? It seems odd to focus on the ~$20B jump in monetary base instead of the ~$200B jump in Federal debt, when the only difference between the two is a bit of interest.<br /><br />In fact, I don't understand where this idea of the monetary Anonymoushttps://www.blogger.com/profile/09950034871913315404noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-65928464828437673262018-02-28T19:57:43.762-06:002018-02-28T19:57:43.762-06:00Mark, even a helicopter drop will prove futile if ...Mark, even a helicopter drop will prove futile if it is expected to be reversed. The original Japan QE was accommodated by big deficits. It was effectively a helicopter drop, but the expected and confirmed reversal of the monetary base shows more is needed than just relying on helicopter drops. You need a tolerance that allows for some reflation--and that implies a willingness to let the David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-43696279758110254842018-02-28T19:53:12.449-06:002018-02-28T19:53:12.449-06:00Doug, yes, Ben Bernanke was always fairly clear th...Doug, yes, Ben Bernanke was always fairly clear that QE was about the asset side of the balance sheet not the liability side. He even said to call it "credit easing" instead of quantitation easing. But therein is the rub. But ultimately limiting the expansion of the liability side (the monetary base) the Fed was reduced to rely on a portfolio rebalancing channel that itself was limited David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-37830326448053579452018-02-28T13:19:25.398-06:002018-02-28T13:19:25.398-06:00My car has a brake pedal and a gas pedal and both ...My car has a brake pedal and a gas pedal and both function exactly as expected. If I punch both pedals at the same time though, the car might speed up or slow down. This doesn't mean that the brakes or the gas pedal don't work as expected. The problem is pushing both at the same time.<br />The Fed didn't just do QE. It also started paying IOR - and it paid IOR to the banks at rates billnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-34471425357278086062018-02-28T11:14:13.427-06:002018-02-28T11:14:13.427-06:00OK, but actually the FOMC and especially Ben Berna...OK, but actually the FOMC and especially Ben Bernanke made the argument that the purpose and the actual effect of QE was to lower long term interest rates and not raise inflation, at least not directly. The arguments that a temporary expansion of the monetary base would be inflationary did not come from the Fed but from outsiders who were obviously wrong. <br /><br />Although Krugman is correct Anonymoushttps://www.blogger.com/profile/04238918474211582120noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-58455081204721506952018-02-28T09:00:20.635-06:002018-02-28T09:00:20.635-06:00The arguments around QE have always seemed obscure...The arguments around QE have always seemed obscure to me, and I'm not sure that I'm persuaded that it is the credible permanence of the monetary expansion that really matters.<br /><br />Consider two strategies: that actually followed by the FED over the last decade, and "helicopter money", where the monetary expansion is achieved by putting money directly into the hands of the Markhttps://www.blogger.com/profile/18279699469077090424noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-28943304688461645532018-02-28T00:10:44.364-06:002018-02-28T00:10:44.364-06:00Well, excellent post, but....
Does anyone really ...Well, excellent post, but....<br /><br />Does anyone really expect the Bank of Japan to ever sell its hoard of JGBs, now 45% of total outstanding? <br /><br />I find this not a compelling argument, due to the example of the Bank of Japan. <br /><br />Really, the private sector is that clued in to the intricacies of monetary policy, that the expectation that the Fed would sell its bonds is what Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.com