tag:blogger.com,1999:blog-5908830827135060852.post3143158845568569438..comments2024-03-01T02:40:14.946-05:00Comments on Bond Economics: Should We Care About Money Supply Growth?Brian Romanchukhttp://www.blogger.com/profile/02699198289421951151noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-5908830827135060852.post-59411784205548801832022-09-03T11:24:13.696-04:002022-09-03T11:24:13.696-04:00This comment has been removed by a blog administrator.Muhammad Hassanhttps://www.blogger.com/profile/04282277249728542966noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-32626681990727642272022-08-10T10:22:34.224-04:002022-08-10T10:22:34.224-04:00This comment has been removed by a blog administrator.saniyaahttps://www.blogger.com/profile/16233352748184000755noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-91583680487738886672021-11-15T04:49:38.140-05:002021-11-15T04:49:38.140-05:00This comment has been removed by a blog administrator.Usama LaDLahttps://www.blogger.com/profile/12616461869225120305noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-74821140714748392972021-02-09T05:09:12.357-05:002021-02-09T05:09:12.357-05:00This comment has been removed by a blog administrator.seohttps://www.blogger.com/profile/16260462258003393730noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-5715355166950167792020-12-20T23:41:05.999-05:002020-12-20T23:41:05.999-05:00This comment has been removed by a blog administrator.hajikhatrihttps://www.blogger.com/profile/00318376833595149281noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-10348947181676621472019-11-25T10:42:30.823-05:002019-11-25T10:42:30.823-05:00This comment has been removed by a blog administrator.Jeffrey Watsonhttps://www.blogger.com/profile/10048195313014767255noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-1115832821222656332019-11-25T10:29:22.397-05:002019-11-25T10:29:22.397-05:00This comment has been removed by a blog administrator.Philip Piercehttps://www.blogger.com/profile/07475452636071932788noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-6339021861230304232018-11-12T00:10:13.347-05:002018-11-12T00:10:13.347-05:00This comment has been removed by a blog administrator.lizza kimhttps://www.blogger.com/profile/02928622427364243457noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-69201405207058017152018-08-27T14:09:23.092-04:002018-08-27T14:09:23.092-04:00What would matter in that case is fireign exchange...What would matter in that case is fireign exchange reserves - do they have the foreign currency to pay? If the country tried issuing its own currency to get foreign currency, and it has balance of payment concerns, the value of its currency would collapse.<br /><br />It’s not clear how much its domestic money supply numbers matter in that situation.Brian Romanchukhttps://www.blogger.com/profile/02699198289421951151noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-64918663274008558362018-08-27T11:09:23.728-04:002018-08-27T11:09:23.728-04:00"Firstly, if a country has some form of curre..."Firstly, if a country has some form of currency peg system (such as a Gold Standard), and if the money supply is growing faster than the country’s holdings of the backing commodity (gold holdings), then the backing ratio will decline. This raises the odds of a speculative attack on the currency. This is a very real concern for historical analysis, but is not applicable to modern free-floating currencies."<br /><br />Is sort of the same thing as a gold standard applicable if there are large debts due in a foreign currency and the debtors try to use the forex market to acquire the foreign currency needed to pay?Jerry Brownnoreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-18498701522313122132018-08-24T17:40:42.539-04:002018-08-24T17:40:42.539-04:00I would like to give you a fictional narrative and...I would like to give you a fictional narrative and (later) analyze it.<br /><br />Dick and Jane are a young couple who decide to live better by borrowing. They discretely borrow $1000 from a bank the first year of their marriage. Blessed by frugality, they borrow an additional $1000 each year until they reach their 50th anniversary. At that point, they have $50,000 in debt. End of narrative.<br /><br />Now, with your article in mind, how would we expect the events in this narrative to display on GDP and money supply?<br /><br />Now comes only my thinking.<br /><br />Depending upon the theory you are using, the beginning event may or may-not be a money supply or GDP moving effect. Subsequent annual events would be less likely to have additional impact on either money supply or GDP.<br /><br />Conclusions: The events in the narrative may or may-not affect the money supply and GDP depending upon what the source of money used to fund the loan might be and how the supplier of loan funds would have spent the money had he not loaned it away. <br /><br />Based solely on the narrative, we could conclude that both measures could capture the results of a <i> change in the rate of borrowing </i> should it occur. Neither measurement is a predictor of the other.<br /><br />I can think of an exception not illustrated by this fictional narrative. The narrative carries the hidden assumption that money is available for lending. What if there is no money whatsoever to be loaned? I think that the initial creation of money would be an impulse event that would be measured (for the first time) by money supply and GDP.Roger Sparkshttps://www.blogger.com/profile/01734503500078064208noreply@blogger.com