Showing posts with label Monetary Policy. Show all posts
Showing posts with label Monetary Policy. Show all posts
Sunday, July 24, 2011

Very short lesson on what might happen in a few hours in the US Treasury market if a debt deal is not made (or even if one IS made)...

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The Federal government borrows money by issuing US Treasury notes/bills---basically IOU's. I am going to use a very simple example to sh...
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Thursday, June 30, 2011

Since 1985 there are 50% fewer banks in the US making 350% more in loans*...Nothing can go wrong there, right?

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The first graph below shows the change in the number of commerical  banks in the US since the mid-1980's.  I was quite surprised by the ...
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Monday, January 10, 2011

Nice Article on the Federal Reserve Bond Buyers...Learned some things I did not know...A must read for an AP Macro Class or a Money and Banking Class in College.

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NYTIMES: The Fed’s QE2 Traders, Buying Bonds by the Billions The smallest miscalculation, a few one-hundredths of a percentage point here...
Saturday, December 4, 2010

Validation of my rant in class about the Fed-to-Banks-to-US Treasury circular flow of money/circular flow of logic that reminds me of a hamster on a treadmill...

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Last class period I explained one of the pieces of the puzzle as to why the banking system is not lending as much money as they could be. ev...

The Reserve Requirement in action!! Hey, it is as rare as Haley's Comet...Let me enjoy the spectacle that is a Monetary Policy tool rarely employed by a Central Bank...

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The reserve requirement is the Monetary Policy tool of last resort for the US Federal Reserve to employ to control the money creation proces...
Saturday, November 20, 2010

The Reserve Requirement is in the news! The Reserve Requirement is in the news!

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     Ok, not in the US, but in China . However, it is an important concept that applies to the US banking system, so here we go with a basic...
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