by Summary:
In the medium term, the U.S. government has now joined other countries in putting Modern Monetary Theory into operation. The lines between fiscal and monetary policy have been blurred: the Department of the Treasury is providing 0 billion in seed capital for the Federal Reserve to use as leverage to buy loans and investments. These purchases will be designed to help the economy and the financial markets recover. Reciprocally, the Fed will undertake open-ended quantitative easing, which will absorb a good fraction of the Treasury bonds that will be issued to pay for the congressional stimulus program. This will help interest rates remain in reasonable ranges.“Modern Monetary Theory has been made operational.” Purists will certainly feel uneasy about this apparent compromise of
Topics:
Mike Norman considers the following as important: conornavirus, MMT
This could be interesting, too:
In the medium term, the U.S. government has now joined other countries in putting Modern Monetary Theory into operation. The lines between fiscal and monetary policy have been blurred: the Department of the Treasury is providing 0 billion in seed capital for the Federal Reserve to use as leverage to buy loans and investments. These purchases will be designed to help the economy and the financial markets recover. Reciprocally, the Fed will undertake open-ended quantitative easing, which will absorb a good fraction of the Treasury bonds that will be issued to pay for the congressional stimulus program. This will help interest rates remain in reasonable ranges.“Modern Monetary Theory has been made operational.” Purists will certainly feel uneasy about this apparent compromise of
Topics:
Mike Norman considers the following as important: conornavirus, MMT
This could be interesting, too:
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In the medium term, the U.S. government has now joined other countries in putting Modern Monetary Theory into operation. The lines between fiscal and monetary policy have been blurred: the Department of the Treasury is providing $450 billion in seed capital for the Federal Reserve to use as leverage to buy loans and investments. These purchases will be designed to help the economy and the financial markets recover.
Reciprocally, the Fed will undertake open-ended quantitative easing, which will absorb a good fraction of the Treasury bonds that will be issued to pay for the congressional stimulus program. This will help interest rates remain in reasonable ranges.“Modern Monetary Theory has been made operational.”
Purists will certainly feel uneasy about this apparent compromise of central bank independence. But with interest rates at zero in most major markets, traditional levers of monetary policy have been exhausted. Financing fiscal efforts is the best way for central bankers to continue to pursue their mandates. And it is worth noting that central banks have historically played key roles in lending during periods of crisis....Advisor Perspectives
Congress Goes Big, States Play a Vital Part in Recovery, and a Dollar Crunch Takes Hold
Carl R. Tannenbaum, Ryan James Boyle, Vaibhav Tandon of Northern Trust