tag:blogger.com,1999:blog-5713178645208582139.post7843119358332789511..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: Monetary Policy and the Saving Glut Both Mattered for the BoomDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-5713178645208582139.post-37221303790934154752011-03-12T17:33:03.609-06:002011-03-12T17:33:03.609-06:00I can't disagree that a large part of the savi...I can't disagree that a large part of the saving glut was recycled US money supply. The saving glut story gets a lot of its plausibility from the Metzler 2-country S&I diagram beloved of undergrad textbooks. But that diagram of course is based in the discredited loanable funds model that assumes a 1-good barter economy. Keynes said his goal was a theory of a monetary economy. Hayek too ecbnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-7137548919018460172011-03-11T12:30:08.100-06:002011-03-11T12:30:08.100-06:00Thank Greg, fixed it.Thank Greg, fixed it.David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-90133223871785013572011-03-11T11:06:21.681-06:002011-03-11T11:06:21.681-06:00Your last link is to the wrong post.Your last link is to the wrong post.Greg Ransomnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-20393629205476600402011-03-11T08:52:39.813-06:002011-03-11T08:52:39.813-06:00Careful ECB, you are sounding like Bernanke here! ...Careful ECB, you are sounding like Bernanke here! Yes, China takes up a large share of treasuries and agencies creating a shortage of AAA-rated securities for others. Structured finance rides to the rescue by converting risky assets into safe ones and the rest is history.<br /><br />I respond to this demand safe assets story more fully <a href="http://macromarketmusings.blogspot.com/2011/02/David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-48374499427687109432011-03-11T08:35:17.981-06:002011-03-11T08:35:17.981-06:00hmm, still seems like we have a lot of work to do ...hmm, still seems like we have a lot of work to do to understand what happened here. What do you think the effect of China buying up T-bonds was on the MBS market...didnt holders of MBS like to hedge their portfolios with T-bonds, so with more T-bonds held by China, there were less left for hedging....what were the implications of that ?ecbnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-34191971922101805382011-03-11T00:48:29.048-06:002011-03-11T00:48:29.048-06:00Right.
And BOTH fit as causes within the bounds ...Right.<br /><br />And BOTH fit as causes within the bounds of Hayek's malinvestment mechanism -- see Hayek's _MTandTTC_, book 4.Anonymousnoreply@blogger.com