tag:blogger.com,1999:blog-3758330678390419129.post3091144046316560642..comments2024-02-13T02:39:22.756-05:00Comments on EconomicPolicyJournal.com: Is QE2 a Ruse by Bernanke?Robert Wenzelhttp://www.blogger.com/profile/14296920597416905488noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-3758330678390419129.post-85142267081127553732010-11-24T09:32:17.840-05:002010-11-24T09:32:17.840-05:00With interest rate targeting, higher expected infl...With interest rate targeting, higher expected inflation causes the quantity of money to rise. Market forces--increases in the demand for loanable funds and decreases in the supply of loanable funds--put upward pressure on market interest rates. The central bank then creates more money to keep interest rates from rising. The result is increased money expenditures on output, and ceteris Bill Woolseyhttps://www.blogger.com/profile/06330232724290161369noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-31379889070221710802010-11-22T17:57:07.855-05:002010-11-22T17:57:07.855-05:00I thought that the Fed was going to recycle maturi...I thought that the Fed was going to recycle maturing mortgage debt into Treasuries over and above the $600bn QE2.<br /><br />I would expect Bernanke to at least have some plan to neutralise the inflationary effects of QE2 if required, such as raising the rate paid on excess reserves.<br /><br />His real problem is he needs to do an awful lot of funding, not only for the Federal government, but Alasdair Macleodhttp://financeandeconomics.orgnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-28769125411822120352010-11-22T10:56:33.735-05:002010-11-22T10:56:33.735-05:00I second the Anonymous above. More clarification i...I second the Anonymous above. More clarification is needed on this issue. Particularly, I'd be interested in the explanation how "centrally allocating credit and manipulating the structure of interest rates WITHOUT affecting the money stock" would case price inflation/deflation.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-14944191116151824132010-11-22T08:05:55.978-05:002010-11-22T08:05:55.978-05:00Professor Murphy, Mises Daily is needed to clear t...Professor Murphy, Mises Daily is needed to clear this up.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-32926277316705144802010-11-21T21:46:35.487-05:002010-11-21T21:46:35.487-05:00RW, does Hummel also have Greenspan nailed? :)
ht...RW, does Hummel also have Greenspan nailed? :)<br /><br />http://www.cato.org/pub_display.php?pub_id=9756Bob Murphyhttps://www.blogger.com/profile/04001108408649311528noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-35228247321584445352010-11-21T18:28:55.359-05:002010-11-21T18:28:55.359-05:00I found his paper, it is interesting.
http://www.s...I found his paper, it is interesting.<br />http://www.sjsu.edu/economics/docs/Bernanke_v_Friedman7.docAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-85667390660849181442010-11-21T17:44:15.686-05:002010-11-21T17:44:15.686-05:00@Anonymous
Good question. Hummel details this in ...@Anonymous<br /><br />Good question. Hummel details this in is upcoming paper,it was done in a couple of odd ways, but Hummel has it nailed.<br /><br />My guess as far as inducing the private lending is concerned is that Hummel is thinking it will be unsuccessful. <br /><br />My view is that it is likely to occur and be very inflationary.Robert Wenzelhttps://www.blogger.com/profile/12653378186315529211noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-8877952368976272752010-11-21T17:09:12.374-05:002010-11-21T17:09:12.374-05:00How did the "Fed expanded its balance sheet (...How did the "Fed expanded its balance sheet (and the base) by explicitly borrowing a big chunk of the money"???<br /><br />I understand how they borrowed the remainder by paying interest on reserves... but how did they explicitly borrow?<br /><br />Also, if he is "trying to induce more private lending", won't that be inflationary?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-31381145513115354012010-11-21T14:20:23.668-05:002010-11-21T14:20:23.668-05:00Crazy, perhaps Bernake is smarter than we all thou...Crazy, perhaps Bernake is smarter than we all thought.James E. Millernoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-46747351879538211672010-11-21T13:37:49.171-05:002010-11-21T13:37:49.171-05:00It all goes back to the question: ¿Will Bernanke b...It all goes back to the question: ¿Will Bernanke be able to pull back?<br /><br />My guess: Absolutely not.Erroreshttps://www.blogger.com/profile/11478726583499830007noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-30972637583881719662010-11-21T13:15:17.024-05:002010-11-21T13:15:17.024-05:00Wenzel with a big scoop, once again! Where's t...Wenzel with a big scoop, once again! Where's the WSJ and the Bernanke-mouthpiece WaPo on this one? Did the NYT go bankrupt already, I've heard nothing from them?Taylor Conanthttps://www.blogger.com/profile/18270678440957992085noreply@blogger.com