The demise of the influence of the E-$ market in price inflation began with the remuneration of IBDDs. And later, as Zoltan Poszar claimed, the reverse repo facility was a "death star".
Monetary policy from the period from 1961 to 1981 was overtly influenced by the "monetization of time deposits" in the payment's system. This was essentially complete with the widespread introduction of ATS, NOW, SuperNow, and MMDA accounts.
Monetary policy was then faced with keeping the astonishing acceleration in velocity permanently high just to keep the economy moving.
The S&L crisis and the GFC were both predicted by Dr. Leland J. Pritchard in April 1980. Pritchard also predicted that velocity had plateaued because of the DIDMCA of March 31st 1980. The decline in velocity caused the Great Moderation.
Spencer, I completely fail to understand your comments!
Really, all the problems are captured in the Keynesian macro-economic persuasion that maintains a commercial bank is a financial intermediary (sic).
The demise of the influence of the E-$ market in price inflation began with the remuneration of IBDDs. And later, as Zoltan Poszar claimed, the reverse repo facility was a "death star".
Monetary policy from the period from 1961 to 1981 was overtly influenced by the "monetization of time deposits" in the payment's system. This was essentially complete with the widespread introduction of ATS, NOW, SuperNow, and MMDA accounts.
Monetary policy was then faced with keeping the astonishing acceleration in velocity permanently high just to keep the economy moving.
M*Vi ≠ P*Y. M*Vt = P*T.
The S&L crisis and the GFC were both predicted by Dr. Leland J. Pritchard in April 1980. Pritchard also predicted that velocity had plateaued because of the DIDMCA of March 31st 1980. The decline in velocity caused the Great Moderation.