money supply

How To Totally Misinterpret Deflationary Impulses

By |2018-07-16T18:36:51+00:00July 16th, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Sometimes it pays to wait. Better to be sure than premature. In January 2014, the journal Central Banking handed out its inaugural awards. Among the recipients was Paul Volcker who was bestowed a lifetime achievement prize. The initial Governor of the Year honorific, something like a central banker MVP, went to Mario Draghi of the [...]

Two Very Different Monetary Cases, And Their One Common Theme

By |2017-12-13T12:21:13+00:00December 13th, 2017|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

When we look back at the period known as the Great Inflation there is a tendency, I believe, to truncate the episode only to the most well-known parts. What many people remember are things like gas lines, where oil problems and embargoes left Americans at several points in the seventies too often stuck for trying [...]

EURODOLLAR UNIVERSITY: What Are Reserves To A Modern, Wholesale Money System?

By |2017-11-20T18:22:49+00:00November 20th, 2017|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

It's actually quite difficult to answer the question posed in the title, which in itself is a clue. What we know for sure is what does not count as reserves for a non-reservable currency system. It's that contradiction that sets off the often graphic misconceptions. Quantitative easing has been described as printing money. That’s certainly [...]

Currency Risk That Isn’t About Exchange Values (Eurodollar University)

By |2017-08-28T17:28:03+00:00August 28th, 2017|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

This week the Bureau of Economic Analysis will release updated estimates for Q2 GDP as well as Personal Consumption Expenditures (PCE) and Personal Incomes for July. Accompanying those latter two accounts is the currently preferred inflation standard for the US economy. The PCE Deflator finally hit 2% and in two consecutive months, after revisions, earlier [...]

The Magic Isn’t Gone, It Was Never There

By |2017-08-01T19:45:47+00:00August 1st, 2017|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

In the midst of revisions season, everything is up for re-evaluation. Some end up as big changes, others mere footnotes. A lot has been revised (lower) about the past few years, particularly surrounding the substantial downturn at the end of 2015. Inflation rates are not among that list. The PCE Deflator has been given only [...]