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 ...
Currency Swap Facility Comment
I have something written on currency swaps, but it is probably too complex. I want to make a brief and ...
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, ...
Financial Markets And Inflation
Note: this is an unedited draft chapter section from my inflation manuscript. I am not too happy with this, but ...
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 ...
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 ...
Inflation Index Calculation Basics
My upcoming inflation book continuously refers to price indices, such as the Consumer Price Index (CPI). A price index is ...
Core Inflation Woes
Alex Williams recently wrote “What Is ‘Core PCE Services Ex-Housing’ Anyway?,” which dissects the measure that the Fed is using ...
MMT And Banking
Since I am in the Modern Monetary Theory (MMT) camp, I cannot write a book on baking without covering some ...
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 ...
Basis Point Usage
There has been a strange debate on Twitter about the usage of the term “basis points.” The argument is that ...
Yield Curve Control Sustainability
Megan Greene recently wrote [the] “Bank of Japan Needs the Courage to Change Course” at the Financial Times. I would ...
Yield Curve Control Blues
The Bank of Japan surprised people with a change to its yield curve control (YCC) policy. This has caused a ...
Quick Indicator Comments
I just wanted to make two quick comments about data in the United States. The first is about a new ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
Primer: Bank Capital
Bank capital is the buffer on a bank’s balance sheet that allows it to absorb losses, particularly credit losses. Although ...
Bank Liquidity Management Introduction
For modern financial systems, the key distinguishing characteristic of banks is that they key managers of the liquidity of the ...
