Category Archives: money and finance

economic recovery

It is now give or take five years since a finance-centered economic crisis hit highly-leveraged Western economies. While early on there was talk about a major transformation of world monetary arrangements (Roubini, May 13, 2009, in the NY Times here, … Continue reading

Posted in 2007-2012, accounting, advanced capitalism, economic recovery, money and finance, money velocity, the great contraction, the great contraction 2007-2012 | 1 Comment

Link to Edlin and Jaffee (2009), “Show me the money”: on excess reserves at the Federal Reserve

An unprecedented number of commercial bank reserves ($1.4 trillion) continue to sit idle at US Federal Reserve banks. This raises a number of questions. Why does the Fed pay an interest on these reserves? Would it benefit the economy to … Continue reading

Posted in an actually thriving labor market, economic recovery, macro-economics, money and finance, money velocity | Leave a comment

Excess reserves held by banks at the Federal Reserve: more thoughts and links

Depository institutions — banks — are contractually obligated to hold a certain level of reserves at a Federal Reserve bank, more or less to demonstrate a baseline of solvency. On top of that, banks can leave excess reserves, if they … Continue reading

Posted in an actually thriving labor market, economic recovery, macro-economics, money and finance, the great contraction, the great contraction 2007-2012 | Leave a comment

My pick for economic chart of the year (2012): Excess Reserves Held by the Federal Reserve

As 2012 came to a close, the Atlantic asked 34 different economists with notable web presences to provide one chart that best explains the economic situation. Effectively a database, you can find the 34 charts and explanations here. Also, the … Continue reading

Posted in 2007-2012, an actually thriving labor market, economic recovery, macro-economics, money and finance, money velocity, the great contraction, the great contraction 2007-2012, the price mechanism, Uncategorized | Leave a comment

Treasury bills held by commercial banks: my thoughts

One of the interesting things about the data in the previous post (can click here), is how a reduction in US treasuries held by US commercial banks preceded both the most recent economic recessions. I am not, repeat not, suggesting … Continue reading

Posted in advanced capitalism, an actually thriving labor market, economic recovery, macro-economics, money and finance, the great contraction, the great contraction 2007-2012, Uncategorized | Leave a comment

Treasury bills held by commercial banks, 1947-2012

Thank goodness for St Louis Fed data (general link). Here’s a good piece of data. Treasury and Agency Securities at all commercial banks, 1947-2012 (specific link):  

Posted in 2007-2012, advanced capitalism, debt, macro-economics, money and finance, the great contraction, the great contraction 2007-2012 | 1 Comment

Politico knows how US could centrally plan a “boom economy”

The Politico article referenced earlier in the week, headlined “crafting a boom economy,” presents the conclusion that positive policy actions on taxes, energy, immigration, spending, and trade could lead to an all-out economic “boom” (link). My position: I can be … Continue reading

Posted in 2007-2012, an actually thriving labor market, economic recovery, macro-economics, money and finance, money velocity, the great contraction, the great contraction 2007-2012 | Leave a comment

Martin Wolf on how to address the private debt problem

Keep in mind Wolf is addressing the de-leveraging of private debt, not public debt, which usually gets all the headlines. But to me public debt is not nearly as complex a problem as it is made out to be, due … Continue reading

Posted in 2007-2012, macro-economics, money and finance, prices, the great contraction, the great contraction 2007-2012 | Leave a comment

Bill Gross on the death of equities

Bill Gross, founder and managing director of Pimco, major player in the world of bonds, on the death of equities (link): The cult of equity is dying. Like a once bright green aspen turning to subtle shades of yellow then … Continue reading

Posted in accounting, debt, money and finance, prices, the great contraction 2007-2012 | Leave a comment

Is Facebook the biggest tech IPO we will ever see?

James Surowiecki, writing in The New Yorker: [C]ompanies like Facebook don’t really need the money that an I.P.O. raises. Thanks to things like open-source software and cloud computing, the cost of starting and expanding a technology company has fallen dramatically, … Continue reading

Posted in Facebook, intellectual property, money and finance, prices | Leave a comment