The FED's Ph.Ds. don't know a debit from a credit. All monetary savings originate within the confines of the payment's system. As TDs grow, DDs are depleted, dollar for dollar.
C--19 was already in the works. Powell dug a hole for himself. As I said: "The 4th qtr. 2019 is not the problem. The 1st qtr. 2020 will be negative." Nov 26, 2019.
The Federal Reserve Board’s figure, income velocity, Vi, is endogenously and artificially contrived (N-gDp divided by M) whereas Vt, is an “independent” or exogenous force (having “both magnitude and direction, making it a vector quantity”), acting on prices.
Vi at various intervals, moved in absolute divergent paths from Vt - giving the income velocity economists false signposts
There were 27 price forecasts by individuals and 9 by econometric models for the year 1978 (Business Week). The lowest (Gary Schilling, White Weld), the highest, (Freund, NY, Stock Exch) & (Sprinkel, Harris Trust & Sav.).
The range CPI, 4.9 – 6.5 percent. For the Econometric models, low (Wharton, U. of Penn) 5.7%; high, 6.6% U. of Ga.). For 1978 inflation based upon the CPI figure was 9.018% [and Leland Prichard, in his Money and Banking class, predicted 9%].
See: G.6 Debits and Deposit Turnover at Commercial Banks
In 1931 a commission was established on Member Bank Reserve Requirements. The commission completed their recommendations after a 7 year inquiry on Feb. 5, 1938. The study was entitled
"Member Bank Reserve Requirements -- Analysis of Committee Proposal"
It's 2nd proposal: "Requirements against debits to deposits"
After a 45 year hiatus, this research paper was "declassified" on March 23, 1983. By the time this paper was "declassified", Nobel Laureate Dr. Milton Friedman had declared RRs to be a "tax" [sic].
The FED's Ph.Ds. don't know a debit from a credit. All monetary savings originate within the confines of the payment's system. As TDs grow, DDs are depleted, dollar for dollar.
C--19 was already in the works. Powell dug a hole for himself. As I said: "The 4th qtr. 2019 is not the problem. The 1st qtr. 2020 will be negative." Nov 26, 2019.
The Federal Reserve Board’s figure, income velocity, Vi, is endogenously and artificially contrived (N-gDp divided by M) whereas Vt, is an “independent” or exogenous force (having “both magnitude and direction, making it a vector quantity”), acting on prices.
Vi at various intervals, moved in absolute divergent paths from Vt - giving the income velocity economists false signposts
There were 27 price forecasts by individuals and 9 by econometric models for the year 1978 (Business Week). The lowest (Gary Schilling, White Weld), the highest, (Freund, NY, Stock Exch) & (Sprinkel, Harris Trust & Sav.).
The range CPI, 4.9 – 6.5 percent. For the Econometric models, low (Wharton, U. of Penn) 5.7%; high, 6.6% U. of Ga.). For 1978 inflation based upon the CPI figure was 9.018% [and Leland Prichard, in his Money and Banking class, predicted 9%].
See: G.6 Debits and Deposit Turnover at Commercial Banks
HYPERLINK "http://bit.ly/2pjr81u" \t "_blank"http://bit.ly/2pjr81u
And we knew this already:
In 1931 a commission was established on Member Bank Reserve Requirements. The commission completed their recommendations after a 7 year inquiry on Feb. 5, 1938. The study was entitled
"Member Bank Reserve Requirements -- Analysis of Committee Proposal"
It's 2nd proposal: "Requirements against debits to deposits"
HYPERLINK "http://bit.ly/1A9bYH1" \t "_blank"http://bit.ly/1A9bYH1
After a 45 year hiatus, this research paper was "declassified" on March 23, 1983. By the time this paper was "declassified", Nobel Laureate Dr. Milton Friedman had declared RRs to be a "tax" [sic].
Economics is an exact science.
Good review of many decades of monetary policy.
Remember Charles Plosser!