econbrowser.com - 3/28/2009
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A lot of people have seen this picture of the recent behavior of the monetary base and wondered what it means.
Figure 1. Adjusted monetary base. Source: FRED .
To understand the explosion in the monetary base since September, let's begin with a little background. The ...
econbrowser.com - 3/30/2009
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econbrowser.com —
My previous post reviewed the profound changes in
the balance sheet of the U.S. Federal Reserve over...
the last 18 months. Here I comment on some of the concerns that the new Fed balance sheet raises for the conduct of monetary policy. I would ...
(more)
The Fed's new balance sheet
federalreserve.gov - 3/24/2009
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federalreserve.gov —
The Role of the Federal Reserve in Preserving
Financial and Monetary Stability Joint Statement by the Department...
of the Treasury and the Federal Reserve Introduction Sound economic performance requires both financial stability and monetary stability. ...
(more)
FRB: Press Release--Joint statement by Treasury and ...
hussmanfunds.com - 3/23/2009
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hussmanfunds.com —
March 23, 2009 Fed and Treasury - Putting
off Hard Choices with Easy Money (and Probable Chaos)...
John P. Hussman, Ph.D. All rights reserved and actively enforced. Reprint Policy Last week, the Federal Reserve announced its intention to purchase a ...
(more)
Weekly Market Comment: Fed and Treasury - Putting off ...
Comments
Blog Reactions
Links 3/28/09
naked capitalism —
Why size matters Steve Waldman Goldman allowed executives to exit funds Financial Times AIG Bonuses as Fraudulent Transfers Adam Levitin Credit Slips Bank Executives May Keep TARP Funds After Meeting With Obama Bloomberg Money creation and the Fed Jim Hamilton, Econbrowser Bank of America Accused in Ponzi Lawsuit New York Times George Soros: Britain may have to seek IMF rescue Times Online Why do more open economies have bigger governments? Paolo Epifani and Gino ...
links for 2009-03-28
Economist's View —
... Old and New Evidence - Ball - NBER
Frog, Toad, Cookies, and Financial Regulation - The Baseline Scenario
Obamanomics Isn't About Big Government - Robert Reich
Major industrialised economies pulling each other into abyss - voxeu.org
Why size matters - Interfluidity
Toles - Washington Post
For G.M. and Chrysler, Aid Tied to Restrictions - NYTimes.com
Money creation and the Fed - Econbrowser
The RMB Has Now Moved Back to the Dollar ...
The Start of Something Bad
Lawrance G. Lux —
Reading James Hamilton can sometimes be as mystifying as studying the Fed itself. It has something to do with the nature of the of the discussion; describing a federal bureaucracy being akin to outlining an alien life form. The Fed originally started out holding short-term Treasuries, releasing excess funds in the economy; they holding two Properties of short duration, and lack of horizontal integration with Private holdings. The Fed began an integration with Private holdings beginning in September of 2007 by a Shift to a policy affective influence through manipulation purchase ...
Sunday morning links
The Mess That Greenspan Made —
... room to reduce interest rates - report - MarketWatch • South Africa Reserve Bank to hoard gold - iAfrica • New reserve currency idea needs work-German minister - Reuters HOUSING • Confused in California - CNN/Money • Housing Recovery? What Housing Recovery? - Minyanville • Fed’s MBS Purchases Up from Last Week - HousingWire • Why Are These Renters Smiling? - NY Times FED/TREASURY/BANKING • Money creation and the Fed - EconBrowser • Bankers: Take your TARP money back - ...
Sunday links: stocks vs. bonds
Abnormal Returns —
... Does the bulging Fed balance sheet imply higher inflation down the road? (Econbrowser) ...
The three influences on the money supply, or, why inflation lurks
SCSUScholars —
... Monetary base or "high-powered money" (as we used to call it) is measured by the liabilities of the Federal Reserve. Jim Hamilton over the weekend had two ...
Hot TIPS
Streetwise Professor —
... Fed is sought as a partner for the Treasury in all these new actions is because the Fed is perceived to have deeper pockets than the Treasury. This is not a situation that a self-respecting central bank should let itself get into. My third concern is that the new Fed balance sheet has handicapped the Fed’s ability to fulfill its primary mission, which I see as promoting a stable and predictable low rate of inflation. Which of the Fed’s new assets would it sell off when it needs to absorb back in the huge volume of reserves it has recently created? The Fed’s hoped-for scenario ...
Reading two FOMC statements
SCSUScholars —
... Drops reference to "facilitating the extension of credit to households and businesses" that was in the April statement. Not sure whether this signals they are done with creating new facilities. The new statement concludes by saying that after monitoring its balance sheet it will "make adjustments to its credit and liquidity programs as warranted," which might be their signal that they are thinking about how to unwind their balance sheet expansion. ...
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macroblog.typepad.com 6/3/2009 — If you are hunkered down on inflation watch, yesterday's news offered some soothing words. From Reuters :
"Chinese officials have expressed concern that heavy deficit spending and an ultra-loose monetary policy could spark inflation, eroding the ...
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online.wsj.com 6/22/2009 — FREDERIC S. MISHKIN When the Federal Open Market Committee meets this Tuesday and Wednesday, the Federal Reserve will face a serious dilemma. Since the last committee meeting six weeks ago, the 10-year U.S. Treasury yield has risen by around 70 basis ...
Zero Interest Won't Help Housing Crisis —
The Big Money 3/27/2009
Mortgage rates have dropped to an unprecedented low , but this will do little to aid the troubled housing market, according to Doug McIntyre. For starters, mortgage rates don't affect buyers' credit scores or ability to pay down payments, two key ...
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