Rates or quantitites or both

Rates or quantitites or both

| Bank of Canada, convenience yield, Federal Reserve, hot potato effect, Nick Rowe, open market operations, Steve Waldman

Roaming around the econ blogosphere, I often come across what seems to be a sharp divide between those who think monetary policy is all abou...

Medieval QE

Medieval QE

| agio, coins, convenience yield, liquidity premium, moneyness, quantitative easing, seigniorage

Hand operated rolling mill, for putting the edge impression on to coins I've been reading about the medieval monetary system lately. Wha...

Woodford's forward guidance—why not use forward contracts instead?

Woodford's forward guidance—why not use forward contracts instead?

| convenience yield, forward guidance, Michael Woodford, quantitative easing, zero lower bound

...once the supply of reserves is sufficient to drive the short-term riskless rate to zero..., there is no reason to expect further increase...

The rise and fall (and rise) of the hot potato effect

The rise and fall (and rise) of the hot potato effect

| backing theory of money, convenience yield, hot potato effect

Don Randi Trio +1 at the Baked Potato , Poppy Records, 1971. [ link ] In this post I'll argue that: 1. When it comes to financial asset...

The convenience yield as epicentre of monetary policy implementation

The convenience yield as epicentre of monetary policy implementation

| convenience yield, federal funds rate

Let's not get carried away by the idea that central banks set overnight interest rates. Central banks exercise direct control over the e...

The fed funds rate was never the Fed's actual policy lever

The fed funds rate was never the Fed's actual policy lever

| convenience yield, federal funds rate, Federal Reserve, market monetarism, moneyness, Nick Rowe, nominal interest rates

The lever on which a central bank pushes or pulls in order to keep its target variable (say inflation) on track is commonly referred to as t...