For those of you who are interested in monetary policy implementation, the link below leads to a list of posts discussing technical aspects of monetary policy implementation. This is on a new blog "Explorations in Macro, Money, and Financial Markets" by "ATR". The articles explain the means by which central banks steer short-term rates within a target interest rate corridor.
Explorations in Macro, Money, and Financial Markets: Table of Contents - Monetary Policy Implementation Series
Sunday, November 17, 2013
4 comments:
Note: Posts are manually moderated, with a varying delay. Some disappear.
The comment section here is largely dead. My Substack or Twitter are better places to have a conversation.
Given that this is largely a backup way to reach me, I am going to reject posts that annoy me. Please post lengthy essays elsewhere.
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Hey, thanks for the free publicity!
ReplyDeleteI'm actually pretty excited about the material I'm sharing in those posts, since it goes above and beyond the explanations and discussions I typically see on the internet – including from the typically more nuanced heterodox folks. It's also very compatible with Post-Keynesian views of banking (which Bindseil essentially holds: http://www.elgaronline.com/view/journals/roke/1-4/roke.2013.04.01.xml) and aligns, in many respects, with the descriptions of monetary policy implementation I've seen from the likes of Lavoie and Fullwiler. However, it does seem to depart a bit from their descriptions in that it argues quantities can be used to achieve (and not just defend) new target interbank rates. I have a feeling these views can be reconciled through the assumption regarding certainty/uncertainty (explained here http://macromoneymarkets.blogspot.com/2013/11/the-aggregate-liquidity-management.html), but not sure. I aim to do a post on this, plus comparing it with what we hear from common mainstream, explanations.
In any case, I’d love to have the heterodox blog community (Post-K, MMT, MR, etc. folks) share their thoughts on this stuff. Mainstreamers, market monetarists, etc. as well. I recognize it’s a ton of material to get through though. I would like to condense it even more at some point…
You're welcome. I am usually more worried about the longer maturities on the yield curve, and top down macro, so I generally want to simplify out the details of policy implementation. But with things like QE and debt ceiling dramas, the implementation details are now of a lot more interest.
DeleteWith regards to the length of the presentation, one possibility is creating a pdf or ebook. My feeling is that the blog format is not really suited for longer articles with equations. I am currently looking at dusting off my LaTex skills and doing some longer pieces in those formats. Since I would have to be a bit more careful with things like literature surveys, it will take awhile.
Yap! I got more information on how monetary policy implementation has been worked and what are the things needed for it.
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