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...

Give Bernanke a long enough lever and a fulcrum on which to place it, and he'll move NGDP

Give Bernanke a long enough lever and a fulcrum on which to place it, and he'll move NGDP

| inflation, market monetarism, Mike Sproul, Miles Kimball, Nick Rowe, open market operations, Paul Krugman, quantitative easing, Scott Sumner, zero lower bound

I'm running into a lot of central bank doubt lately. Mike Sax and Unlearning Economics , for instance, both question the ability of the...

Market monetarists and "buying up everything"

Market monetarists and "buying up everything"

| fundamental value, inflation, market monetarism, medium of exchange, open market operations, stock market and equities

Market monetarists have a reductio ad absurdum that they like to throw in the face of anyone who doubts the ability of central banks to crea...