money multiplier

Anticipation of QEII in the US remains among the most potent forces in the capital markets.   Bernanke's pre-weekend speech and two dovish speeches since--Evans and Rosengren (both voting members of the FOMC).  The case the…

by Gary Shilling Investor attitudes have reversed abruptly in recent months. As late as last March, most translated the year-long robust rise in stocks, foreign currencies, commodities and the weakness in Treasury bonds that had commenced…

In a recent post on the money multiplier, a reader Luis Enrique asked about bank lending and capital constraints. Anecdotally, much of the reduction in credit is supply-constrained as well as demand-constrained. That means it's a matter of…

Editor's Note: Do not confuse the use of the term 'loanable funds' used here with the theory of loanable funds which implies government spending crowds out private spending because of a limited pool of 'loanable funds' in an economy. The…

A post by Annaly Capital Management Some recent economic data (like today’s downwardly-revised “final” reading on 1Q 2010 GDP) have suggested that the economic recovery is waning. Not surprisingly, talk of additional stimulus has started…

The June Monthly Commentary By Annaly Capital Management. The Economy: The financial crisis is not over The Residential Mortgage Market: The tale of "fails" in the mortgage market The Commercial Mortgage Market:…

The well-regarded and surprisingly independent Beijing-based media outlet Caijing is no more. The site is up, but the content is frozen in time, nothing having been written since early November. Happily, Caijing editor Hu Shuli has now…

Randy Wray says: The Federal Reserve on Monday proposed allowing banks to park their reserves at the central bank, a move aimed at weaning the economy off extraordinary infusions of cash and curbing inflation. The Fed would create the…

This is a pretty wonkish post but I hope you appreciate the concepts presented. I made some allusions to modern monetary theory in a recent post when I asked, “If the U.S. stopped issuing treasuries, would it go broke?” The short answer is…

Several notable economists prognosticated on what Japan should do to get out of their malaise in the 1990s but none of them understood the problem or the options available to the sovereign government. They all gave poor advice. The way…