tag:blogger.com,1999:blog-5624436327404149621.post6886776212706474960..comments2024-03-28T20:07:31.640-07:00Comments on Quantitative Ease by Carola Binder: Three Thought-Provoking Central Banking ReadsCarolahttp://www.blogger.com/profile/12783977056485775882noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-5624436327404149621.post-92069389913890746352015-11-25T10:09:40.437-08:002015-11-25T10:09:40.437-08:00What's fascinating to me is that the central b...What's fascinating to me is that the central banks are now using <a href="http://www.modernanalytics.com/predictive-modeling-techniques" rel="nofollow">predictive modeling methods</a> in order to see into the future and make sound decisions. We're in a new age of big data, very exciting to see where this takes us.Anonymoushttps://www.blogger.com/profile/18083533462296252640noreply@blogger.comtag:blogger.com,1999:blog-5624436327404149621.post-44038081725421226662013-11-12T14:48:12.571-08:002013-11-12T14:48:12.571-08:00Inflation expectations needed to be included in an...Inflation expectations needed to be included in any model of assets bubbles. One of the reasons to use debt is the expectation that the debt will be repaid in much cheaper dollars in the future, while the nominal value of the asset will rise.<br /><br />Now if inflation rises as expected, the speculator makes money.<br /><br />If inflation doesn't rise, he may still make money, so long as other buyers (greater fools) still expect asset prices to rise further. <br /><br />But at some point the divergence between actual inflation and the rise in asset prices becomes so great that the lower than expected income from the assets can no longer cover the debt service.<br /><br />At that point, forced sellers can no longer find buyers and the bubble deflates (and the debt used in the bubble must be written off.) Advant Guardhttps://www.blogger.com/profile/13724697741711826082noreply@blogger.comtag:blogger.com,1999:blog-5624436327404149621.post-79138356014091698972013-07-24T20:20:34.099-07:002013-07-24T20:20:34.099-07:00Of course money is a liability. Cash is a zero int...Of course money is a liability. Cash is a zero interest bearing liability of the government. Coincidence the USD has lost virtually all of its purchasing power since the inception of the Federal Reserve system??Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5624436327404149621.post-29391421713852053802013-07-23T21:38:12.247-07:002013-07-23T21:38:12.247-07:00Nice post. Really enjoy it.
Just one point, Nick R...Nice post. Really enjoy it.<br />Just one point, Nick Rowe's stuff is just a restatement of MMTers' point.Anonymousnoreply@blogger.com