Having just managed to quell a dangerous rebellion among her fellow Committee members, it did not seem the most opportune time for Janet Yellen to start dreaming of the sort of post-war ‘demand management’ that would happily trade a few extra percentage points of price inflation in order to move a little further up the […]
Category Archives: Money
There are those who can display a solid grasp of the oft–misunderstood mechanics of credit and money generation by banks and who are also well aware of the episodes of endemic mistakes this entrains in in our system. Yet, perhaps because they possess a certain ideological bent, many such commentators cannot seem to steel themselves […]
For those who will not take my word for it that banks do create deposits by lending money, let me quote you a little Roepke from a footnote (p113) to his 1936 work, ‘Crises & Cycles’: “The process [of credit creation] is now clearly explained in any text-book on economics, banking or money (especially recommendable […]
The craziness that is Abenomics seems to have one flimsy foundation: viz., that Japan’s fiscal situation seems so dire as not to be susceptible of a rational approach. Not that this is any real excuse for the political cowardice which attempts to disguise the problem through gross financial and monetary manipulation. Please click the link […]
In this complimentary extract from last month’s edition of ‘Money, Macro & Markets‘, that’s the issue at which I take a detailed look. Please follow the link to access the PDF:- 16-09-29-mmm-sep-useqty
To the superficial observer, October will go down as a time in which nothing much happened, the S&P and the Nikkei basically unchanged on the month and Europe and the UK each off around 1%. Please see below the fold for the rest of Monday’s edition of ‘Two-Minute Markets’ or listen HERE on SoundCloud
I was recently flattered to be asked how I envisaged the dreaded ‘helicopter money’ working if it were not to simply add further to commercial banks’ already crippling mass of deadweight liabilities and assets, given that not only would printing it up in physical form be tortuous but that cash itself is only one conveniently […]
In light of the breathless anticipation which preceded the Fed Chair’s speech to her peers at Jackson Hole and cognisant of the mild state of befuddlement with which it was received, we felt it would be of interest to readers to have a translation, together with a gloss (each in bold), in order to try to remove some of […]
As we have laid out in some detail in our professional work, it is clear that Chinese banks have entirely lost their inhibitions about creating money these past twelve months. It is equally clear that once such money is called into existence, someone must be caught in the act of holding it when a balance sheet snapshot […]
Ah, Brexit! What is there left to say that not already been said, most of it either out of folly or falsehood? As regards the overall political backdrop to this lightning bolt of mass discontent, the only thing that is clear is that there is no clarity—neither within Britain nor without. If, as the Good Book […]