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...

Toying with the monetary transmission mechanism

Toying with the monetary transmission mechanism

| bitcoin, clearing and settlement, open market operations

Does it matter what the Fed buys? ...from whom? ...or how? I don't think so. The Fed currently buys and sells government-issued and guar...

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...

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...