tag:blogger.com,1999:blog-6616959642391988608.post6123596284783459574..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: Random charts and thoughtsScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-6616959642391988608.post-24369264391134464562015-11-06T19:16:12.401-08:002015-11-06T19:16:12.401-08:00FYI 100% reserves
No more "endogenous" ...<br />FYI 100% reserves<br /><br />No more "endogenous" money supply. <br /><br />From Marginal Revoluation:<br /><br />"A Swiss group has collected the 100,000 signatures necessary to require a national referendum on requiring banks to hold 100% reserves.<br />In a nut shell, the proposal extends the Swiss Federation’s existing exclusive right to create coins and notes, to also Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-82353940712552007852015-11-06T08:59:44.620-08:002015-11-06T08:59:44.620-08:00Matthew: I agree that the standard for raising rat...Matthew: I agree that the standard for raising rates should not be whether the economy can withstand a tightening, but that is how the Fed apparently looks at things. I don't agree, however, that TIPS spreads, gold, and commodities suggest the Fed is too tight. 5-yr TIPS spreads are being driven primarily by oil prices, and that is not something the Fed should be trying to manage. Longer-termScott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-34259811117673330642015-11-06T08:16:52.288-08:002015-11-06T08:16:52.288-08:00Thanks for the charts, Scott.
One point, though.....Thanks for the charts, Scott.<br /><br />One point, though... The standard for whether or not the Fed should raise the Fed Funds rate shouldn't be whether the American economy can "withstand" a small hike. The question should always be, directionally, where the money supply should move.<br /><br />TIPS spreads, both level and direction, suggest the Fed should, if anything, be Grechsterhttps://www.blogger.com/profile/08898953158865778397noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-88042586728535451032015-11-05T21:15:46.974-08:002015-11-05T21:15:46.974-08:00Useful information, thanks.Useful information, thanks.McKibbinUSAhttps://www.blogger.com/profile/10545798495680527622noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-30027907582434964752015-11-05T18:36:28.018-08:002015-11-05T18:36:28.018-08:00OT to Scott Grannis: the nation of Switzerland is ...OT to Scott Grannis: the nation of Switzerland is considering mandating 100% reserves for their commercial banks. In this situation, commercial banks would not have the ability to create money, and that ability would fall solely upon the Swiss National Bank. Tyler Cowen has a post on this. Interesting.<br /><br />What does this mean for money creation?Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-16239652200059461622015-11-05T16:34:51.583-08:002015-11-05T16:34:51.583-08:00The Bank of Japan pays 0.10% interest on excess re...The Bank of Japan pays 0.10% interest on excess reserves and the islands have an unemployment rate of 3%.<br /><br />The Bank of Japan, of course, has an ongoing QE program. The Fed should look to the Bank of Japan for guidance.<br /><br />I doubt I will see 3% to 4% IOER in my lifetime, and I figure I got a decade or two left.<br /><br />But then, who knows? Perhaps the GOP will nominate a Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.com