Posts Tagged ‘interest rates’

  • Cost of the QE3

    Monetary Policy: The Cost of QE3

    Sep 20, 13 • 1066 Views • No Comments

    Quantitative easing began and continues in front of a computer. If you had visited the Fed when QE1 was being implemented, you would have seen several people, daily, sitting in front of a computer, selecting securities and then buying them. Keeping track of......  [read more]

  • Money Supply: A Cash Mystery

    Jul 10, 13 • 415 Views • No Comments

    While the demand for cash is up… We are using it less to pay for things… So, what are people doing with their cash? (Hint: Compare the total currency in circulation to denominations up to $50.) Our clue is the soaring demand for $100 bills.......  [read more]

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    Monetary Policy: The Punch Bowl

    Jun 28, 13 • 488 Views • No Comments

    Sort of like Max in Maurice Sendak’s, Where the Wild Things Are, the Federal Reserve sometimes says, “And now, let the wild rumpus start.” Then though, Max cries out, “Now stop!” and sends “the wild things to bed without......  [read more]

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    Savers or Borrowers?

    Apr 5, 11 • 679 Views • No Comments

    In 1987, a $100 savings account would have earned close to $9 in interest. In 2005, $3.75 or so. Now, maybe 47 cents? The WSJ, had a good article describing how savers are suffering. The retirees who expected to depend on interest income until they died have......  [read more]

  • Crowding Out or In?

    Dec 9, 09 • 1319 Views • No Comments

    In their textbooks, economists typically refer to......  [read more]