tag:blogger.com,1999:blog-2499715909956774229.post7751427890077206178..comments2024-03-22T22:37:02.639-07:00Comments on Stephen Williamson: New Monetarist Economics: Monetary Policy NormalizationStephen Williamsonhttp://www.blogger.com/profile/01434465858419028592noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2499715909956774229.post-6713706709207743812014-11-15T01:17:24.790-08:002014-11-15T01:17:24.790-08:00thanks! very clear explanation. thanks! very clear explanation. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2499715909956774229.post-44734415924823795962014-11-13T06:20:50.079-08:002014-11-13T06:20:50.079-08:00Details are in this previous post:
http://newmone...Details are in this previous post:<br /><br />http://newmonetarism.blogspot.com/2014/08/the-on-rrp-facility-and-post-liftoff.htmlStephen Williamsonhttps://www.blogger.com/profile/01434465858419028592noreply@blogger.comtag:blogger.com,1999:blog-2499715909956774229.post-20509782526873235742014-11-13T02:00:40.331-08:002014-11-13T02:00:40.331-08:00Maybe a dumb question, but why does the IOER not s...Maybe a dumb question, but why does the IOER not serve as a floor? Why are banks lending at less than the IOER in the fed funds market?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2499715909956774229.post-57769367113137656352014-11-12T17:43:43.616-08:002014-11-12T17:43:43.616-08:00It seems that the massive expansion of reserves ha...It seems that the massive expansion of reserves hasn't had much effect on inflation because the demand for money has increased not because people think the money expansion is not permanent. The monetary system isnt offering enough reward for risk so entities are holding reserves a lot more.<br /><br />The central bank needs to expand liquidity to entities that have a much lower and more stable demand for money like the general public. Policy is so much easier this way.CMAhttp://cmamonetary.orgnoreply@blogger.com