tag:blogger.com,1999:blog-4900303239154048192.post5430472338839699553..comments2024-03-06T06:34:42.881-05:00Comments on EconoSpeak: Monetary Policy: From Managing the Monetary Base to Setting an Interest Rate FloorUnknownnoreply@blogger.comBlogger7125tag:blogger.com,1999:blog-4900303239154048192.post-88163470833525210132013-09-02T04:10:21.392-04:002013-09-02T04:10:21.392-04:00This comment has been removed by the author.Anonymoushttps://www.blogger.com/profile/02989209653473963684noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-21422908965395044522013-01-22T09:58:52.168-05:002013-01-22T09:58:52.168-05:00Re: "Stripped of all complexity, the governm...Re: "Stripped of all complexity, the government is paying wealth-holders to not invest....."<br /><br />Because if they actually tried to invest this wealth there would be hyperinflation?<br /><br />Do we still live in a world of 'market capitalism'? Or was 'market capitalism' and invention of the state in the first instance (as Karl Polanyi posited)?Myrtle Blackwoodhttps://www.blogger.com/profile/07427043367624101075noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-58507977036161615412013-01-21T01:32:20.791-05:002013-01-21T01:32:20.791-05:00Needless to say, that such monitoring capabilities...Needless to say, that such monitoring capabilities are likely to prevent unauthorized use of company vehicles, and thus help fleet owners unnecessary expenses and risks. <a href="http://www.rtafleet.com/" rel="nofollow">gps tracking fleet management</a>GaretT_Thttps://www.blogger.com/profile/03603779005472627941noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-49627124371970586162013-01-20T22:41:24.068-05:002013-01-20T22:41:24.068-05:00"The irony has not been lost on some of us th..."The irony has not been lost on some of us that, at a time when there is official consternation about the unwillingness of banks to finance small businesses and other ostensibly worthy borrowers, the Fed is paying them not to lend."<br /><br />Excuse me, what irony?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-7506135724428267002013-01-20T01:46:45.594-05:002013-01-20T01:46:45.594-05:00Thanks for the response. I see what you were getti...Thanks for the response. I see what you were getting at. <br /><br />A link to your post is included in my post, Does the Permanent Floor Affect the Inflationary Effects of the Platinum Coin? (http://bubblesandbusts.blogspot.com/2013/01/does-permanent-floor-affect.html)Anonymoushttps://www.blogger.com/profile/00720722626969395929noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-77594139144801530482013-01-19T13:51:33.635-05:002013-01-19T13:51:33.635-05:00Cash per se is not relevant, since reserves can mo...Cash per se is not relevant, since reserves can morph into cash instantly, on demand.<br /><br />Control over the monetary base is also leverage over short term interest rates if banks desire to be fully lent or close to it. If there are excess reserves, no. With interest rates on reserves, the base becomes largely irrelevant, since the portion the Fed induces banks to hold as excess reserves essentially "disappears". The point I was trying to make, though, is that playing with the monetary base works for depository institutions, but the financial system has evolved away from that model. An interest rate floor is a more universal mechanism.Peter Dormanhttps://www.blogger.com/profile/00093399591393648071noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-30771879043572775342013-01-18T10:07:28.793-05:002013-01-18T10:07:28.793-05:00Peter,
Glad you are joining the debate. You menti...Peter,<br /><br />Glad you are joining the debate. You mention "banks begin to draw down their excess reserves." How would they do this? As I understand monetary operations, the Fed controls the size of their balance sheet, which leaves aggregate private banks to choose between reserves and currency at any given level. If the Fed pays a positive IOR, there is no reason for banks to swap into non-interest bearing physical currency. <br /><br />The primary reason for continuing the "floor" system permanently is that it allows the Fed to exogenously set both the interest rate and monetary base. Previously it was forced to choose between one or the other. Anonymoushttps://www.blogger.com/profile/00720722626969395929noreply@blogger.com