reserves

Wow! We see the word "Deflation" everywhere; we see it in every financial publication and hear it every time we turn on financial TV. We see that the pundits who were bearish because of runaway inflation have just recently…

By Marshall Auerback and Edward Harrison. Marshall's view Ed has asked me to deal specifically with the issue of Ricardian equivalence, the theorem used by anti-government proponents to argue that fiscal deficits are counterproductive and…

As we begin the second half of what has already been a challenging year, it may be helpful to consider the potential drivers of the global capital markets.    As always, numerous factors have to be juggled.  Now however,…

There is nothing preventing the Federal Reserve from buying up any financial asset it so chooses with money it creates out of thin air. In fact, I seriously doubt that the vaunted bond market vigilantes would be able to cause US interest…

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:…

A news wire is reporting that Russia remains committed to diversifying its reserves and has not changed its view of the euro.  This is consistent with what several other central banks, including China, Japan and South Korea have…

Nothing is so bad, that it isn't good for something. So goes an old adage in my home country (and I would imagine elsewhere too) and perhaps if hard-burdened Eurozone policy makers and investors are finding it hard to find any kind…

Long-term interest rates are really a series of short-term rates smashed together. The real reason that the Federal Reserve would lose control over short-term interest rates is because the economy was operating at full capacity and creating…

Marshall Auerback here with a post which I originally published at New Deal 2.0. This post on deficits in fiat currency regimes is the second in a series of posts on Modern Monetary Theory. Many market analysts, commentators and economists…

We know that JPMorgan is not substantially increasing lending anytime soon. And we also know that banks are recapitalizing courtesy of a steep yield curve and near zero rates, what I would call free money.  What I didn't know is how…