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Home / Tag Archives: Monetary Policy

Tag Archives: Monetary Policy

Schaetze To That

When Mario Draghi sat down for his scheduled press conference on April 4, 2012, it was a key moment and he knew it. The ECB had finished up the second of its “massive” LTRO auctions only weeks before. Draghi was still relatively new to the job, having taken over for Jean-Claude Trichet the prior November amidst substantial turmoil. The non-standard “flood of liquidity” was an about-face from his predecessor (who had been raising rates in 2011 before the wheels fell off), an early test of his...

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Minutes of the Federal Open Market Committee, January 28-29, 2020

The Federal Reserve Board and the Federal Open Market Committee on Wednesday released the attached minutes of the Committee meeting held on January 28-29, 2020. The minutes for each regularly scheduled meeting of the Committee ordinarily are made available three weeks after the day of the policy decision and subsequently are published in the Board's Annual Report. The descriptions of economic and financial conditions contained in these...

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Don’t Forget Europe

According to Eurostat last week, Europe’s win streak reached 27 quarters in Q4 2019. If you count winning solely by the sign in front of quarterly GDP changes, then Mario Draghi handed off to Christine Lagarde an expansion just one quarter shy of seven years. It’s supposed to be impressive. Lagarde, however, begins her tenure in very much the same way as Draghi began his. Europe’s economy just barely kept the streak alive. Eurostat’s preliminary estimates show real GDP in the EA19 increased...

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Yeah…But

Yeah… Barry Bonds, a Major League Baseball (MLB) player, put up some amazing stats in his career. What sets him apart from other players is that he got better in the later years of his career, a time when most players see their production rapidly decline. Before the age of 30, Bonds hit a home run every 5.9% of the time he was at bat. After his 30th birthday, that rate almost doubled to over 10%. From age 36 to 39, he hit an astounding .351, well above his lifetime .298 batting average....

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10/1/20: Eight centuries of global real interest rates

There is a smashingly good paper out from the Bank of England, titled "Eight centuries of global real interest rates, R-G, and the ‘suprasecular’ decline, 1311–2018", Staff Working Paper No. 845, by Paul Schmelzing.Using "archival, printed primary, and secondary sources, this paper reconstructs global real interest rates on an annual basis going back to the 14th century, covering 78% of advanced economy GDP over time."Key findings:"... across successive monetary and fiscal regimes, and a...

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Minutes of the Federal Open Market Committee, December 10-11, 2019

The Federal Reserve Board and the Federal Open Market Committee on Friday released the attached minutes of the Committee meeting held on December 10-11, 2019. A summary of economic projections made by Federal Reserve Board members and Reserve Bank presidents for the meeting is also included as an addendum to these minutes. The minutes for each regularly scheduled meeting of the Committee ordinarily are made available three weeks after...

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10/12/19: Irish Banks: Part 2

Continuing with the coverage of the Irish banks, in the second article for The Currency, available here: https://www.thecurrency.news/articles/4810/a-catalyst-for-underperformance-how-systemic-risk-and-strategic-failures-are-eroding-the-performance-of-the-irish-banks, I cover the assets side of the banks' balancesheets.The article argues that "The banks are failing to provide sufficient support for the demand for investment funding, and are effectively removed from financing corporate...

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10/12/19: Irish Banks: Part 1

Returning back to the blog after a break, some updates on recent published work.In the first article on Irish banking for The Currency, titled "Culture wars and poor financial performance: examining Ireland’s dysfunctional, beleaguered banking system", I argued that "The financial performance of the Irish banks has been abysmal. Not for the lack of profit margins, but due to strategic decisions to withdraw from lending in the potential growth segments of the domestic and European...

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The Last Central Banker With Balls

[Balls as in courage and bravery.  Exemplified in the quote,  “Margaret Thatcher was Ronald Reagan with balls.”  Don’t get all PC on us now!] As a graduate student, I interviewed at the Federal Reserve Board in the Eccles Building on Constitutional Avenue (entrance on 20th Street) as a junior economist.  This was way before the exceptionally tight security now ubiquitous in government buildings.  I had worked at other Federal government agencies but never experienced the tight security...

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Minutes of the Federal Open Market Committee, October 29-30, 2019

The Federal Reserve Board and the Federal Open Market Committee on Wednesday released the attached minutes of the Committee meeting held on October 29-30, 2019 and of the conference call held on October 4, 2019. The minutes for each regularly scheduled meeting of the Committee ordinarily are made available three weeks after the day of the policy decision and subsequently are published in the Board’s Annual Report. The descriptions of...

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