$this->documents = new Documents_Manager(); $this->kits_manager = new Kits_Manager(); $this->schemes_manager = new Schemes_Manager(); $this->elements_manager = new Elements_Manager(); $this->widgets_manager = new Widgets_Manager(); $this->skins_manager = new Skins_Manager(); $this->files_manager = new Files_Manager(); $this->assets_manager = new Assets_Manager(); $this->icons_manager = new Icons_Manager(); $this->settings = new Settings(); $this->tools = new Tools(); $this->editor = new Editor(); $this->preview = new Preview(); $this->frontend = new Frontend(); $this->maintenance_mode = new Maintenance_Mode(); $this->dynamic_tags = new Dynamic_Tags_Manager(); $this->modules_manager = new Modules_Manager(); $this->templates_manager = new TemplateLibrary\Manager(); $this->role_manager = new Core\RoleManager\Role_Manager(); $this->system_info = new System_Info_Module(); $this->revisions_manager = new Revisions_Manager(); $this->images_manager = new Images_Manager(); $this->wp = new Wp_Api(); $this->assets_loader = new Assets_Loader(); $this->uploads_manager = new Uploads_Manager(); $this->admin_menu_manager = new Admin_Menu_Manager(); $this->admin_menu_manager->register_actions(); User::init(); Api::init(); Tracker::init(); $this->upgrade = new Core\Upgrade\Manager(); $this->custom_tasks = new Core\Upgrade\Custom_Tasks_Manager(); $this->app = new App\App(); if ( is_admin() ) { $this->heartbeat = new Heartbeat(); $this->wordpress_widgets_manager = new WordPress_Widgets_Manager(); $this->admin = new Admin(); $this->beta_testers = new Beta_Testers(); new Elementor_3_Re_Migrate_Globals(); } } /** * @since 2.3.0 * @access public */ public function init_common() { $this->common = new CommonApp(); $this->common->init_components(); } /** * Get Legacy Mode * * @since 3.0.0 * @deprecated 3.1.0 Use `Plugin::$instance->experiments->is_feature_active()` instead * * @param string $mode_name Optional. Default is null * * @return bool|bool[] */ public function get_legacy_mode( $mode_name = null ) { self::$instance->modules_manager->get_modules( 'dev-tools' )->deprecation ->deprecated_function( __METHOD__, '3.1.0', 'Plugin::$instance->experiments->is_feature_active()' ); $legacy_mode = [ 'elementWrappers' => ! self::$instance->experiments->is_feature_active( 'e_dom_optimization' ), ]; if ( ! $mode_name ) { return $legacy_mode; } if ( isset( $legacy_mode[ $mode_name ] ) ) { return $legacy_mode[ $mode_name ]; } // If there is no legacy mode with the given mode name; return false; } /** * Add custom post type support. * * Register Elementor support for all the supported post types defined by * the user in the admin screen and saved as `elementor_cpt_support` option * in WordPress `$wpdb->options` table. * * If no custom post type selected, usually in new installs, this method * will return the two default post types: `page` and `post`. * * @since 1.0.0 * @access private */ private function add_cpt_support() { $cpt_support = get_option( 'elementor_cpt_support', self::ELEMENTOR_DEFAULT_POST_TYPES ); foreach ( $cpt_support as $cpt_slug ) { add_post_type_support( $cpt_slug, 'elementor' ); } } /** * Register autoloader. * * Elementor autoloader loads all the classes needed to run the plugin. * * @since 1.6.0 * @access private */ private function register_autoloader() { require_once ELEMENTOR_PATH . '/includes/autoloader.php'; Autoloader::run(); } /** * Plugin Magic Getter * * @since 3.1.0 * @access public * * @param $property * @return mixed * @throws \Exception */ public function __get( $property ) { if ( 'posts_css_manager' === $property ) { self::$instance->modules_manager->get_modules( 'dev-tools' )->deprecation->deprecated_argument( 'Plugin::$instance->posts_css_manager', '2.7.0', 'Plugin::$instance->files_manager' ); return $this->files_manager; } if ( 'data_manager' === $property ) { return Data_Manager::instance(); } if ( property_exists( $this, $property ) ) { throw new \Exception( 'Cannot access private property.' ); } return null; } /** * Plugin constructor. * * Initializing Elementor plugin. * * @since 1.0.0 * @access private */ private function __construct() { $this->register_autoloader(); $this->logger = Log_Manager::instance(); $this->data_manager_v2 = Data_Manager_V2::instance(); Maintenance::init(); Compatibility::register_actions(); add_action( 'init', [ $this, 'init' ], 0 ); add_action( 'rest_api_init', [ $this, 'on_rest_api_init' ], 9 ); } final public static function get_title() { return esc_html__( 'Elementor', 'elementor' ); } } if ( ! defined( 'ELEMENTOR_TESTS' ) ) { // In tests we run the instance manually. Plugin::instance(); } The Markets Made Me Do It! - Forex Daily Feed
- Advertisement -Newspaper WordPress Theme
Bond MarketThe Markets Made Me Do It!

The Markets Made Me Do It!

British Prime Minister sacked the Chancellor of the Exchequer (head of Treasury) Kwasi Kwarteng on Friday, and economic commentary was predictable. Variations of “markets force government to backtrack!” were abundant, and echoed by Labour Party supporters (which would be surprising for anyone unfamiliar with British politics).

Of course, this is a variant of the “bond/currency vigilantes” stories that neoliberals love, and so features prominently in market discourse.

The reaction in the bond market should have been predictable by the Chancellor. In the current environment, looser fiscal policy is going to be met with higher policy rates. The trickier part of the situation was the fragility of the liquidity situation of U.K. pension funds — which the Treasury should have been aware of, since they have an entire team dedicated to meeting investors to gauge demand along the yield curve.

Returning to the MMT wrangling, since none of this should surprise anybody, it tells us nothing about MMT. However, I want to push back against the “financial markets constrained the government” narrative.

The MMT argument is that inflation constrains fiscal policy, and that is what happened. Under current institutional arrangements, the central bank reaction function is to hike rates as inflation rises (modulo the growth outlook). The Truss government should have been aware of the potential of such a reaction, and so this is just telling us what happens when amateurs run fiscal policy.

Saying that anything else is the constraint runs into problems.

  • If default risk was allegedly the concern, just adapt procedures within the funding process to make involuntary default impossible (which might be the case in the U.K. in the first place). Since no serious observer argued that there was risk of default in this case, we cannot point to this in the first place.
  • If rising bond yields is allegedly the problem, the central bank can just cap them. The reason why they do not that is because the central banks want to let bond yields float as part of how they use interest rate policy to control inflation. Although central banks could directly set bond yields, that is not being done in the U.K., and the conventional argument is that this would interfere with the central bank’s ability to control inflation. (I think the neoclassical arguments about interest rate pegging are silly, rather there are political issues with the central bank administering gains and losses in the bond market.)
  • Furthermore, if rising bond yields are bad, why not just trigger a depression to keep bond yields nice and low?
  • The “currency vigilante” story makes a bit more sense, but I think of currencies as just an extended notion of the “price level.” The correct attitude towards the currency is a benign neglect, such as the attitude of modern Canadian central bankers. If your domestic inflation situation is under control, the currency cannot fall too far without relative prices getting too far out of whack. Let the trend followers have their fun, but sooner or later, the currency value will revert.

The political discussions within the U.K. would likely be bewildering to a sensible outsider. Labour supporters are cheering on the destruction of the Conservative politicians. This fits British post-war history, where governments were periodically humbled by sterling crises. That said, it seems unusual for a left-leaning party to encourage worship of financial markets — what do they think will happen when they finally win an election? Luckily for me, that is not my problem.

Email subscription: Go to https://bondeconomics.substack.com/ 

(c) Brian Romanchuk 2022


Please enter your comment!
Please enter your name here

Subscribe Today





Get unlimited access to our EXCLUSIVE Content and our archive of subscriber stories.

Exclusive content

- Advertisement -Newspaper WordPress Theme

Latest article

More article

- Advertisement -Newspaper WordPress Theme