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...

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...

Do banks have a widow's cruse?

Do banks have a widow's cruse?

| David Glasner, hot potato effect, James Tobin, reflux, stock market and equities, unit of account

Elijah and the Widow of Zarephath James Tobin wrote a paper back in 1963 called Commercial Banks as Creators of Money in which he pointed o...

Google as monetary superpower — a parable

Google as monetary superpower — a parable

| Federal Reserve, hot potato effect, liquidity premium, moneyness, nominal interest rates, open market operations, quantitative easing, quantity theory of money, stock market and equities

In trying to understand how modern monetary policy works, I find it useful to create parables, or alternate monetary worlds, and put them th...