{"id":44015,"date":"2019-02-24T20:15:44","date_gmt":"2019-02-25T01:15:44","guid":{"rendered":"https:\/\/olduvai.ca\/?p=44015"},"modified":"2019-02-24T20:15:49","modified_gmt":"2019-02-25T01:15:49","slug":"weekly-commentary-dudley-on-debt-and-mmt","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=44015","title":{"rendered":"Weekly Commentary: Dudley on Debt and MMT"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"http:\/\/creditbubblebulletin.blogspot.com\/2019\/02\/weekly-commentary-dudley-on-debt-and-mmt.html\">Weekly Commentary: Dudley on Debt and MMT<\/a><\/h3>\n\n\n\n<p>December\u2019s market instability and resulting Fed capitulation to the marketplace continue to reverberate. At this point, markets basically assume the Fed is well into the process of terminating policy normalization. Only a couple of months since completing its almost $3.0 TN stimulus program, markets now expect the ECB to move forward with some type of additional stimulus measures (likely akin to its long-term refinancing operations\/LTRO). There\u2019s even talk that the Bank of Japan could, once again, ramp up its interminable \u201cmoney printing\u201d operations (BOJ balance sheet $5.0 TN\u2026 and counting). Manic global markets have briskly moved way beyond a simple Fed \u201cpause.\u201d<\/p>\n\n\n\n<p>There was the Thursday Reuters article (Howard Schneider and Jonathan Spicer): \u201cA Fed Pivot, Born of Volatility, Missteps, and New Economic Reality: The Federal Reserve\u2019s promise in January to be \u2018patient\u2019 about further interest rate hikes, putting a three-year-old process of policy tightening on hold, calmed markets after weeks of turmoil that wiped out trillions of dollars of household wealth. But interviews with more than half a dozen policymakers and others close to the process suggest it also marked a more fundamental shift that could define Chairman Jerome Powell\u2019s tenure as the point where the Fed first fully embraced a world of stubbornly weak inflation, perennially slower growth and permanently lower interest rates.\u201d<\/p>\n\n\n\n<p>And then Friday from the Financial Times (Sam Fleming): \u201cSlow-inflation Conundrum Prompts Rethink at the Federal Reserve: Ten years into the recovery and with unemployment near half-century lows, the Federal Reserve\u2019s traditional models suggest inflation should be surging. Instead, officials are grappling with unexpectedly tepid price growth, prompting some to rethink their strategy for steering the US economy. <\/p>\n\n\n\n<p>&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Weekly Commentary: Dudley on Debt and MMT December\u2019s market instability and resulting Fed capitulation to the marketplace continue to reverberate. At this point, markets basically assume the Fed is well into the process of terminating policy normalization. Only a couple of months since completing its almost $3.0 TN stimulus program, markets now expect the ECB [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[8469,85,7756,233,282,303,16888,24043,17970,3650],"class_list":["post-44015","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bill-dudley","tag-boj","tag-credit-bubble-bulletin","tag-ecb","tag-european-central-bank","tag-fed","tag-jerome-powell","tag-mmt","tag-modern-monetary-theory","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/44015","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=44015"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/44015\/revisions"}],"predecessor-version":[{"id":44016,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/44015\/revisions\/44016"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=44015"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=44015"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=44015"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}