It's valuable to look back and analyze the course of N-gDp. The relationship between money and economic growth was textbook during C-19. It also represented a classic example of banks don't lend deposits, i.e., "flight to liquidity".
“Quantity leads and velocity follows”. Cit. Dying of Money -By Jens O. Parson
Hanke is supposedly an expert on the money stock. Not so. M2 is mud pie.
Means-of-payment money hit all-time highs in November 2020. Should have hit the brakes then.
The money stock can never be properly managed by any attempt to control the cost of credit. The FED may have lost control of the money stock in April 2024 (up $264b since Feb).
It's valuable to look back and analyze the course of N-gDp. The relationship between money and economic growth was textbook during C-19. It also represented a classic example of banks don't lend deposits, i.e., "flight to liquidity".
“Quantity leads and velocity follows”. Cit. Dying of Money -By Jens O. Parson
Hanke is supposedly an expert on the money stock. Not so. M2 is mud pie.
Means-of-payment money hit all-time highs in November 2020. Should have hit the brakes then.
The money stock can never be properly managed by any attempt to control the cost of credit. The FED may have lost control of the money stock in April 2024 (up $264b since Feb).
I agree with a lot of this, but it fails to point out that some amount of over-target inflation was necessary to facilitate the adjustment of relative prices in response to COVID-Putin. How much depends on your model and the Fed really ought to be transparent about how much IT thought them and now thinks was that amount. _My_ model says the Fed should have started to raise rates in September 2021 when 5- and 10-year TIPS rose above target and started cutting last December.
I think one can get to this policy conclusion whether one thing the Fed should be targeting NGDP or (flexibly) inflation.
It's valuable to look back and analyze the course of N-gDp. The relationship between money and economic growth was textbook during C-19. It also represented a classic example of banks don't lend deposits, i.e., "flight to liquidity".
“Quantity leads and velocity follows”. Cit. Dying of Money -By Jens O. Parson
Hanke is supposedly an expert on the money stock. Not so. M2 is mud pie.
Means-of-payment money hit all-time highs in November 2020. Should have hit the brakes then.
The money stock can never be properly managed by any attempt to control the cost of credit. The FED may have lost control of the money stock in April 2024 (up $264b since Feb).
It's valuable to look back and analyze the course of N-gDp. The relationship between money and economic growth was textbook during C-19. It also represented a classic example of banks don't lend deposits, i.e., "flight to liquidity".
“Quantity leads and velocity follows”. Cit. Dying of Money -By Jens O. Parson
Hanke is supposedly an expert on the money stock. Not so. M2 is mud pie.
Means-of-payment money hit all-time highs in November 2020. Should have hit the brakes then.
The money stock can never be properly managed by any attempt to control the cost of credit. The FED may have lost control of the money stock in April 2024 (up $264b since Feb).
I agree with a lot of this, but it fails to point out that some amount of over-target inflation was necessary to facilitate the adjustment of relative prices in response to COVID-Putin. How much depends on your model and the Fed really ought to be transparent about how much IT thought them and now thinks was that amount. _My_ model says the Fed should have started to raise rates in September 2021 when 5- and 10-year TIPS rose above target and started cutting last December.
I think one can get to this policy conclusion whether one thing the Fed should be targeting NGDP or (flexibly) inflation.