Central Banking

Hidden Intervention: Political Motivations Driving Fed Policy

– November 8, 2019

The Federal Reserve is subsidizing the Treasury. The apparent trouble in overnight markets appears to have provided an excuse to quietly reengage in the now decade-old program of support.

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Central Banking, Inflating

LIBOR Is Out, SOFR Is in: What It Means

– October 30, 2019

That the LIBOR fixings were manipulated was an open secret among financial market participants stretching back to the late 1980s

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Bitcoin and Blockchain, Central Banking, Video

Why the Moral Panic Over the Libra? (Video)

– October 24, 2019

When Facebook proposed the Libra, however, moral panic swept Washington.

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Central Banking

The Fed Should Not Paper Over the President’s Policy Errors

– October 11, 2019

Printing money cannot dry up a flood or produce more rainfall in a drought. And it cannot fix the very real problems that result from a trade war.

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Central Banking

Federal Reserve’s “Independence” Masquerade

– October 10, 2019

Chairman Powell’s ideal operating environment most likely looks the same as every other Fed chair’s operating environment: one where the Fed is left alone to treat the economy like a Lego set.

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Central Banking

The Mythology of Cantillon Effects

– October 2, 2019

To Cantillon all new money had the same redistributive and uneven effects, regardless of whether it was first spent in the real economy or entered the credit markets, reducing interest rates.

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Central Banking

The Most Dangerous Idea in Central Banking

– October 1, 2019

Progressives like Yglesias recognize the danger of money in politics. They should consider the danger of politics in money, as well. And not just when it suits their interests.

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Central Banking

The Economics of Seigniorage on Excess Reserves

– September 21, 2019

The greater the unwinding of the balance sheet, the greater will be the difficulty of servicing federal debt. This problem is on the horizon. It will be met by a combination of dollar devaluation, reduction of the budget, or default.

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Central Banking

The Return of the Century Bond

– September 15, 2019

Following the last few years of record-low yields, first on government debt and more recently on private sector debt, we have seen an unexpected twist: the renewal of this long-dead market.

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Central Banking
upsidedown

The Economic Future of a Negative Interest Rate World

– September 3, 2019

In the long run, the deleterious effect of negative interest rates turns economic theory on its head.

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