Note: This post first appeared on Patreon on 2 Jul 2018
I saw a Twitter exchange this morning that reminded me that the Fed is facing a political crisis due to its quantitative easing program. And I think this will limit the Fed's ability to act in the next recession. That adds to the loss of fiscal and monetary policy space I mentioned last week. But since this is 'political', I am going to make my explanation brief.
Excess reserves mean you have to pay interest to banks
Here's the tweet a...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.