Friends, not enemies: How the backing and quantity theories co-determine the price level

Friends, not enemies: How the backing and quantity theories co-determine the price level

| backing theory of money, liquidity premium, Mike Sproul, moneyness, quantity theory of money

Kurt Schuler was kind enough to host a Mike Sproul blog post, which I suggest everyone read. I think Mike's backing theory makes a lo...

An ode to illiquid stocks for the retail investor

An ode to illiquid stocks for the retail investor

| liquidity options, liquidity premium, moneyness, stock market and equities

Today's go-to advice for the small retail investor is to invest in passive ETFs and index funds. These low cost alternatives are better ...

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...

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...

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...