Monetary Policy
87 Threads
Olivier Blanchard: Central banks probably won't want to redefine their inflation target higher, but if they can get inflation down to 3% over the next year or two, they should live...
In my speech “Finding the right mix: monetary-fiscal interaction at times of high inflation” at the Bank of England Watchers’ conference I explained why I see a risk that monetary...
It seems like several Central Banks are going through a sudden ''change of heart''. Recently many Central Banks and today the ECB came out pretty dovish. Let's see what's going o...
Think of the monetary system like a game of Musical Chairs. USD Base Money (Reserves at the Fed + Physical Cash & Coins) are the Chairs. All other USD monetary aggregates (M2, M3...
Bond markets are growing increasingly unstable, and many have warned of a "sovereign debt crisis" unfolding. But monetary leaders now possess numerous tools to prevent a disaster....
The wheels are coming off the global economy. Here is where I think the market is heading. 👇👇👇
A few cracks are starting to show within the Quantitative Tightening plan. The root issue comes from the link between liquidity retrieval via QT and the bank reserves.
Important Committees you must know for UPSC CSE - (A thread) 👇
The Fed now earns less on its assets than it pays on liabilities. It's a problem, and the only realistic way to fix this short-term is to slow down hikes. If they don't fix it, w...
A/ It is extremely important that thinking people grasp the basics of our modern global monetary system. What you do not know can hurt you. Here is a very basic outline. 1. Nation...
Fed governor Christopher Waller pushes back against the idea of a premature Fed policy pivot due to market instability "Let me be clear that this is not something I’m considering...
NY Fed President John Williams: Monetary policy is working. Financial conditions have tightened. Spending will slow. Commodities prices are falling. Supply chains are improving. B...
In my speech @ForoLaToja in beautiful Galicia I talked about “Monetary policy in a cost-of-living crisis” and had an interesting panel discussion about inflation with my former col...
The yield curve “suggests” that US monetary policy has not been this restrictive since the ‘80s. As measured by the 2-year Treasury yield relative to the 10-year Treasury yield, it...
The Bank of England has a supposed duty to control inflation in the UK, being required to ensure it runs at about 2% a year. The crash in the value of the pound this weekend makes...
The FOMC is the primary monetary policy decision making body within the federal reserve. How do these 12 unelected people reach decisions on monetary policy that affects billions...
Prof @d_blanchflower and I issued a press release yesterday calling for radical reform of the Bank of England’s Monetary Policy Committee (BoE MPC). We think this is really importa...
The ECB went for a 75bps hike (I was for 50bps). That difference doesn't matter so much, but what concerns me is what was announced, what it can mean for the rest of the cycle, and...
Fed Vice Chairwoman Lael Brainard: "At some point in the tightening cycle, the risks will become more two-sided." She says there will be a risk of tightening too much, and histor...
“Easy Money.” It’s what your drunk friend says when they’re about to lose $2,000 at the blackjack table in Vegas. But it also has something to do with recent monetary policy. Th...
1/12 Macro musings - Fed plays safe as inflation figures roil on The Fed uses two major tools to manage its narrative: threats and promises. Until Jackson Hole, Chair JP gave the...
The US (and other developed nations) have an aging population problem. Fewer young people, more old people. Means less spending, less economic activity, more profit taking. That's...
Today’s restrictive Fed policies in a rapidly deteriorating economy are the preconditions for a steep recession. Time for a thread 👇👇👇
QE leads to steeper yield curves and under certain circumstances to higher (not lower) long-end bond yields. It's QT that generates flatter yield curves and possibly lower yields....