Monetary Realism

Understanding The Modern Monetary System…

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We need Bubbles

Cullen fiscal stimulus

One of the most influential financial people on twitter made a flat statement about what is going to be obvious about fiscal stimulus: Economies cannot maintain output without continuous fiscal stimulus. This idea -the economy demands some form of stimulus to operate at full capacity – has long been one of the main ideas behind this… Read More

A $3 trillion shift for in the world economy

Interesting take from Francisco Blanch at Bank of America Merrill Lynch: “will push back $3 trillion a year from oil producers to global consumers, setting the stage for one of the largest transfers of wealth in human history.” The fall in oil prices has been estimated to give about 1.2 in consumer spending back for every $.01 the price… Read More

Fed Decision Day

Today is probably the end of ZIRP, and the fed will probably raise rates. My personal take is Yellen is raising rates for 2 reasons: Yellen gains much credibility from raising rates when it is not really needed. Yellen thinks this gives the Fed additional room to cut rates when needed next time. Raising rates… Read More