tag:blogger.com,1999:blog-5908830827135060852.post3960321035338030754..comments2024-03-29T02:54:56.523-04:00Comments on Bond Economics: Money Printing (Sigh)Brian Romanchukhttp://www.blogger.com/profile/02699198289421951151noreply@blogger.comBlogger17125tag:blogger.com,1999:blog-5908830827135060852.post-52000069444445092142022-11-09T15:15:18.397-05:002022-11-09T15:15:18.397-05:00This comment has been removed by a blog administrator.Discount Lighting & Fanshttps://www.blogger.com/profile/00356100313853495934noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-10991194008912933752022-07-17T08:03:22.317-04:002022-07-17T08:03:22.317-04:00This comment has been removed by a blog administrator.Duckyhttps://www.blogger.com/profile/18054817222387153951noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-60055491201949761162022-06-09T00:01:16.020-04:002022-06-09T00:01:16.020-04:00This comment has been removed by a blog administrator.sameerhttps://www.blogger.com/profile/11479874470572537361noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-46886316768424585482022-05-22T02:38:24.903-04:002022-05-22T02:38:24.903-04:00This comment has been removed by a blog administrator.Edward foxhttps://www.blogger.com/profile/18267905378325518780noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-36270349036250742252022-04-02T07:19:45.584-04:002022-04-02T07:19:45.584-04:00This comment has been removed by a blog administrator.Geron20425https://www.blogger.com/profile/18199408202798816280noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-20289712803681415472022-01-30T14:44:12.679-05:002022-01-30T14:44:12.679-05:00This comment has been removed by a blog administrator.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-48888764670612082442022-01-29T09:22:53.581-05:002022-01-29T09:22:53.581-05:00This comment has been removed by a blog administrator.Mia Ethanhttps://www.blogger.com/profile/11382659737465059468noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-79846888195346185012021-10-23T00:06:12.174-04:002021-10-23T00:06:12.174-04:00Yup- I agree with you. What governments spend on ...Yup- I agree with you. What governments spend on matters. A lot. <br />It is way past the point, since about 2009, where Monetarist ideas might have had something to stand on. 'Misguided faith' seems the nicest way to describe them accurately at this point. The more reasonable monetarists realize this also and say things like if the central bank is paying interest on reserves then that's not really money or some such nonsense.<br />I always love how Mike Norman emphasizes it in his podcast -'They're printin money! Printin money!'<br />Loved your podcast with Christian and Patricia.Jerry Brownhttps://www.blogger.com/profile/16571572049627552805noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-36323258865172374732021-10-22T11:33:03.954-04:002021-10-22T11:33:03.954-04:00I am discussing the monetary aggregates are they a...I am discussing the monetary aggregates are they are commonly defined, in reference to discussions about money supply growth. It seems clear to me that I am not endorsing the use of monetary aggregates in analysis.Brian Romanchukhttps://www.blogger.com/profile/02699198289421951151noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-44579384765318406342021-10-22T11:31:23.558-04:002021-10-22T11:31:23.558-04:00I am discussing the issue of "money printing&...I am discussing the issue of "money printing" that other people invoke, and what it means. I am certainly not endorsing the concept, nor wanting to find a way to rescue it.Brian Romanchukhttps://www.blogger.com/profile/02699198289421951151noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-43773566773824660742021-10-22T10:18:38.556-04:002021-10-22T10:18:38.556-04:00The point that you are missing throughout this pre...The point that you are missing throughout this presentation is that when new money is created, new financial wealth is also created. Hence, "If households do not want to hold banknotes," please do not divert to a discussion of how paper money is destroyed while ignoring that households are careful to preserve their wealth no matter how household holdings of paper money may evolve.<br /><br />Whether paid by paper money or electronic money, taxes paid to government represent a transfer of wealth. The wealth transferred is only lost if the surveying economist wishes to close his eyes to the wealth ownership concatenation.Roger Sparkshttps://www.blogger.com/profile/01734503500078064208noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-39959948338136859122021-10-22T10:01:31.823-04:002021-10-22T10:01:31.823-04:00"But bank deposits are in M1, commercial pape..."But bank deposits are in M1, commercial paper isn’t, hence M1 falls."<br /><br />Yes. All because of the definition of M1, which includes bank deposits that don't move, but not commercial paper or public deposits. <br /><br />Because reasons.<br /><br />I was reading some Lombard Research from 2000 today that talked about government borrowing from the banking sector. Also technically correct, but practically irrelevant.<br /><br />Half the problem is Humpty Dumpty terms. NeilWhttps://www.blogger.com/profile/11565959939525324309noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-4823652186733215882021-10-22T09:55:56.268-04:002021-10-22T09:55:56.268-04:00"There’s no guarantee that the target bank wi..."There’s no guarantee that the target bank will lend back to the original bank."<br /><br />There is if they want to accept the payment for their customer. <br />Otherwise the balance sheets won't balance. <br /><br />The only other option is to refuse to accept the transfer. In which case the payment system falls apart and they have an unhappy customer expecting a payment. <br /><br />There's no funds being replaced. All that happens is that the ownership tags change. Netting off and central banks may obfuscate all this, but that's what is happening. <br /><br />Remember we're talking the default situation - without the clearing facilities of a central bank. <br /><br />What central banks do is ensure that temporary funding is always there to make the balance sheets balance and the process go more smoothly. Hence the lender of last resort function. <br />NeilWhttps://www.blogger.com/profile/11565959939525324309noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-23793758571218103792021-10-22T07:55:54.722-04:002021-10-22T07:55:54.722-04:001) There’s no guarantee that the target bank will ...1) There’s no guarantee that the target bank will lend back to the original bank. In any event, the funds needs to be replaced somehow.<br />2) Sure, they’re all short-term liabilities. But bank deposits are in M1, commercial paper isn’t, hence M1 falls.Brian Romanchukhttps://www.blogger.com/profile/02699198289421951151noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-26261924306522670122021-10-22T00:42:51.598-04:002021-10-22T00:42:51.598-04:00"If depositors rotate towards money market fu..."If depositors rotate towards money market funds, banks will face liquidity outflows that need to be funded somehow. "<br /><br />Is that the case? The default mechanism is that for a deposit to be transferred to any other target deposit taking institution, that institution has to replace the original depositor in the source deposit taking institution (ie the target lends to the source). If that doesn't happen then the payment can't be made in the first place. <br /><br />Over time a central clearing house may develop which allows target deposit institutions to swap these things between each other, but for the system to clear somebody has to end up with them net.<br /><br />For me paper is just a deposit on better terms. There's little functional difference. Which ownership tag is on the paper has to be recorded just like which ownership tag is on the deposit. NeilWhttps://www.blogger.com/profile/11565959939525324309noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-70530626727356780412021-10-21T18:37:42.014-04:002021-10-21T18:37:42.014-04:00That makes no sense to me. If massive changes resu...That makes no sense to me. If massive changes result in no observable effect in inflation in a number of countries, that tells us that money supply has almost no causal effect on inflation. All those structural factors were in place for decades, money supply growth was wildly different at different points, yet inflation was mainly stable (albeit with obvious problems starting in 2020)Brian Romanchukhttps://www.blogger.com/profile/02699198289421951151noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-23838853809398507142021-10-21T17:57:43.098-04:002021-10-21T17:57:43.098-04:00MMT seems to take gleeful satisfaction from the fa...MMT seems to take gleeful satisfaction from the fact that inflationary pressures have remained weak in the face of massive increases in central bank liabilities.<br /><br />I think what has to be borne in mind is that for the last forty years or so globalization has melded the world economy into one giant labour market effectively. <br /><br />In the west we buy goods that have been made with very cheap labour operating in very competitive markets.<br /><br />The second aspect that needs to be considered is the secular trend in the mal-distribution of income and wealth which has resulted in less specific consumption and greater flow of funds into financial assets.<br /><br />Both these trends I believe have outweighed the effects that changes in the level of money might have had.<br /><br />Henry Rech<br />Anonymousnoreply@blogger.com