Old news: April 3. But still: Following up on yesterday’s post, see here from Ambrose Evans-Pritchard in The Telegraph (emphasis mine): “All this talk of exit strategies is deeply negative,” [Woodford] told a London Business School seminar on the merits of Helicopter money, or “overt monetary financing”. He said the Bank of Japan made the mistake of […]
Michael Woodford and Adair Turner Agree: CBs Won’t (and Shouldn’t) Sell the Bonds Back
CHUCK BLAHOUS FINDS THE ANSWER FOR SOCIAL SECURITY AND LOSES IT.
by Dale Coberly CHUCK BLAHOUS FINDS THE ANSWER FOR SOCIAL SECURITY AND LOSES IT. Charles Blahous is one of the politically appointed Trustees for Social Security. He has written “A Guide To The 2013 Social Security Trustees Report” at e21 Economic Policies for the 21st Century http://www.economics21.org/commentary/guide-2013-social-security-trustees-report . Blahous tells us “Social Security faces a […]
Remarkably Stable NGDP Growth – Part 2
Part 1. The low standard deviation of GDP growth is simply an artifact of low GDP growth numbers. OK – that’s a bit over stated. The low standard deviation of GDP growth is primarily an artifact of low GDP growth numbers Suppose you have a data set with values hovering around 13, with a […]
Defining “Reserves”
I’ve run into quite a bit of confusion in conversations discussing bank reserves, and found occasion to get precise on the usage in recent comments. I thought I’d share it with others. This has been vetted by several who are more worthy than I, so I feel quite confident in offering it up. 1. “Reserve […]
About that “Wealth Effect”: Not so Much…
Economists like to say that their discipline is the study of scarcity, or even the science of scarcity. But I’d like to suggest that — acknowledging that it’s a behavioral, social “science” — it’s actually the study of human reaction functions: If X happens, how do people (individually and as groups) react? But unlike other […]
The Market Doesn’t Think the Fed Will Ever Sell Those Bonds Back
You know the trillion dollars a year of Treasury and GSE bonds that the Fed’s buying up? (And the $3-trillion+ it’s already holding?) It’s driving up bond prices and suppressing yields, right? And if it starts selling them back, it will drive down prices and increase yields, right? The market should be front-running that, right? […]
Do Collateral Chains Create Real Value?
Some of the keenest monetary thinkers out there, over at FT Alphaville — Izabella Kaminska, Cardiff Garcia, etc. (I’ll even throw in Tyler Durden at Zero Hedge, with qualifications) — have been pointing us for years towards the work of IMF Senior Economist Manmohan Singh on collateral chains in financial markets. He provides wonderfully cogent explanation of […]
Remarkably Stable NGDP Growth – Part 1
In comments here, Mark Sadowski says a lot of thoughtful things, including this: Beckworth is claiming that AD growth has been steady despite fiscal contraction which it has. In fact the standard deviation of the quarterly growth rate in nominal GDP (NGDP) since 2010Q1 is by far the lowest for any 13 quarter period on […]
Apple’s Tax Rates–just what does Cook’s "way I look at this" mean???
by Linda Beale Apple’s Tax Rates–just what does Cook’s “way I look at this” mean??? There’s been a good bit in the news lately about the way multinational enterprises like Apple, Google, and many others especially in Big Pharm and Big IP actively reduce their US taxes through offshoring that is offshoring-on-paper-only to a large […]