As we predicted over a year ago, in a world in which QE has failed, and in which the ice-cold grip of NIRP has to be global in order to achieve its intended purpose of forcing savers around the world to spend the taxed product of their labor, one thi...
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Tag Archive: Helicopter Money
What the Fed Did NOT do
We will not spend much time discussing what the FOMC did as tons of ink have been spilled on that already. We will rather spend more time on what the FOMC did not do. A short recap will suffice; the FOMC did raise the interest rate band by 25 basis p...
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Why it Makes Sense to Exit the Euro Zone in Times of Balance Sheet Recessions
Italy will follow Japan for decade(s) of balance sheet recession. There is one mean to avoid it. The periphery should use current positive market sentiments and low inflation to exit the euro zone.
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Are Asset Price Bubbles Needed to Make the US Economy Recover?
About the trade-off between economic recovery and financial stability In the recent post on gold prices, we maintained that the Fed will raise interest rates far later than most FOMC members admit. This would imply that the years of financial repression will continue and investors will push up asset prices, incl. gold, instead. Many libertarians …
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When Will Hedge Funds and FX Traders Close their Short Yen Positions?
Hedge Funds have lost their power. This year has shown that their only remaining possibility to gain easy money is a concerted action with some of their friends manipulating currency markets, calling it “currency wars” and creating an unholy alliance with the dovish prime minister Abe. Some of the biggest U.S. hedge-fund investors have made …
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Opinions of Leading Economists on Japan and the Unholy Alliance of Kyle Bass and Shinzo Abe
We give an overview of opinions of leading economists that want to help Japan out of deflation. Paul Krugman, Richard Koo, Adam Posen and Kyle Bass.
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Helicopter Money against Animal Spirits and our Critique
The newest paper by McCulley and Poszar "Helicopter Money: or how I stopped worrying and love fiscal-monetary cooperation" presents fiscal policy and monetary policy along these two criteria
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Epic Shift in Monetary Policy: Japan goes SNB, Nuclear Option
According to Bloomberg, at least prime minister Abe is taking the nuclear option and is following the SNB in buying foreign assets. This is a huge change in global monetary policy.
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