Learning From The Crisis (MMT Perspective)?
The panel I am on is shifting its topic a bit to include some discussion of the latest crisis. Although ...
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Currency Swap Facility Comment
I have something written on currency swaps, but it is probably too complex. I want to make a brief and ...
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Oh No, Panic In Silicon VAlley
The American Federal Deposit Insurance Corporation (FDIC) made the unusual step of shutting down the flailing Silicon Valley Bank (hereafter, ...
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Financial Markets And Inflation
Note: this is an unedited draft chapter section from my inflation manuscript. I am not too happy with this, but ...
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MMT After The Pandemic Shock
It is likely that I will be participating (remotely) in an academic panel about Modern Monetary Theory (MMT), with a ...
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One Weird Trick That Neoclassical Economists Hate!
Blair Fix caused a bit of a stir last week on economics Twitter with a cleaned up version of the ...
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Inflation Index Calculation Basics
My upcoming inflation book continuously refers to price indices, such as the Consumer Price Index (CPI). A price index is ...
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Core Inflation Woes
Alex Williams recently wrote “What Is ‘Core PCE Services Ex-Housing’ Anyway?,” which dissects the measure that the Fed is using ...
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MMT And Banking
Since I am in the Modern Monetary Theory (MMT) camp, I cannot write a book on baking without covering some ...
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The Return Of The Debt Ceiling (Again)
The debt ceiling is being used a negotiating tool in American politics yet again. My concern with American politics is ...
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Basis Point Usage
There has been a strange debate on Twitter about the usage of the term “basis points.” The argument is that ...
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Yield Curve Control Sustainability
Megan Greene recently wrote [the] “Bank of Japan Needs the Courage to Change Course” at the Financial Times. I would ...
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Happy Holidays!
I will be off until early January. Merry Christmas, and a Happy New Year! ...
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Yield Curve Control Blues
The Bank of Japan surprised people with a change to its yield curve control (YCC) policy. This has caused a ...
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Quick Indicator Comments
I just wanted to make two quick comments about data in the United States. The first is about a new ...
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Lagging Economic Indicator Still Lagging
My feeling is that although it is too early to declare victory over high inflation rates, I think we are ...
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Currency Swap Comments From The BIS
Claudio Borio, Robert McCauley, and Patrick McGuire solved the problem about what I will write about this week by publishing ...
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Banks, Securities Markets, And Risk
Large bank corporations now tend to have both traditional lending divisions as well as securities market divisions. This was not ...
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Yield Curve Inversions And Recessions
This article continues the previous discussion of bank net interest margins. In it, I discussed how changes in the yield ...
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The Yield Curve And Bank Net Interest Margins
One of the topics that comes up whenever government bond curves re-price is the relationship between the yield curve and ...
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Crypto Failures Versus Bank Failures
The ongoing collapse in cryptocurrency exchanges is attracting attention and schadenfreude. As an uninterested outside observer, all I can say ...
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Primer: Bank Capital
Bank capital is the buffer on a bank’s balance sheet that allows it to absorb losses, particularly credit losses. Although ...
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Bank Liquidity Management Introduction
For modern financial systems, the key distinguishing characteristic of banks is that they key managers of the liquidity of the ...
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