by Mike Kimel Update …Since this post has gotten a lot of attention, jump here for myfinal word on this topic. I’m sure I’m missing something here, because Paul Krugman is so often extremely perceptive, but I think here he is very, very wrong. He writes: The naive (or deliberately misleading) version of Fed policy […]

By Noni Mausa The Opposite of Bankrupt Some time ago I wrote about dollars as bizarre IOUs, with no names,dates or specific obligations. They are free-floating promises, whichcan be used to command the efforts of the other people who accept themas valid. I give you ten promises, and you give me a sack of potatoes. […]

The Federal Reserve, the Bank of England, and the Bank of Japan are considering further quantitative easing. It’s an explicit statement, as with the Federal Reserve and the Bank of England, or implied by the fact that the foreign exchange intervention will eventually be sterilized if the policy rule is not changed, as with the […]

by Mike Kimel The Non-Relationship Between Interest Rates and the Money Supply, Part 2Cross-posted at the Presimetrics Blog. This post is a bit less about Presidents than usual, but its a follow-up to last week’s post on the non-relationship between the money supply and interest rates. (That post appeared both at the Presimetrics and Angry […]

by Mike KimelThis piece has been cross-posted at The Presimetrics Blog. The Non-Relationship Between Interest Rates and the Money Supply Figure 1 The graph shows that all but one recession since 1948 was preceded by a big drop in the real money supply per person over the length of a year. The exception – July […]