#quantitative easing

[probablyasocialecologist]

For most of the time, politicians have ostensibly retreated into the pre-Keynesian view that governments should run like households and seek to ‘balance their books.’ And most of the media has tended to endorse this fallacy. But when it was obviously necessary to act to save the economy, for example after the Global Financial Crisis or during the height of the pandemic when much of the economy had to be shut down, governments suddenly remembered that they have the extraordinary power to create money. After the Global Financial Crisis, the government – via the Bank of England’s Quantitative Easing programme – created around £445 billion of new money to prevent a collapse in the banking system. During COVID, the government created around £450 billion more to prevent a collapse in household finances when people would otherwise have had no income. In total, during the 21st century, the government has created £895 billion of new money – when it had the will to do so. And the view from economists is supportive. The argument for government spending to pay for healthcare, save businesses from bankruptcy, create new jobs and prevent a climate apocalypse has been made by the proponents of Modern Monetary Theory, for example Stephanie Kelton in her book The Deficit Myth. This book explains in detail how money is created and shows that the idea that governments should – or even responsibly could – budget in the same way as a normal household is no more than (admittedly compelling) rhetoric. But politicians and the media have – by and large – reverted to the notion that the government finances constitute a brake on what can be done for the public good. And our government continues to rein-in public spending even though it is clear that most public services are struggling badly.

[socialismforall]

2008-Style Global Financial Crisis to Re-Emerge as QE Reaches Limit? (#S4A Livestream 105 Supplement)

[dayofbanks]

Monetary Policy and the Evolution of Wealth Disparity - An Assessment Using US Survey of Consumer Finance Data.

This session examines the distributional effects of recent - monetary policies on income and wealth. Using the Federal Reserve Board's Survey of Consumer Finances, the research tracks key subpopulations as monetary policy shifted from conventional interest rates to Quantitative Easing. Employing advanced modeling techniques, the study analyzes volatility and bifurcation in capital gains and incomes among U.S.

Watch the Monetary Policy and the Evolution of Wealth Disparity - An Assessment Using US Survey of Consumer Finance Data!

[spokenforinvaliduser]

the actual debt graph of the united states

[pissanddie]

Goldin+Senneby, Quantitative Melencolia. Commissioned by the Whitworth, The University of Manchester. Courtesy of the artist and Nome, Berlin. Photo: Michael Pollard. More info

[finance-economy]

Quantitative Easing: An In-Depth Analysis of a Powerful Monetary Policy Tool

[zenruption]

What Is Quantitative Easing?

Quantitative easing (QE) is a monetary policy in which a central bank, such as the Federal Reserve in the United States, buys government bonds or other financial assets from commercial banks and other financial institutions in an effort to stimulate economic growth and increase the money supply.

The goal of quantitative easing is to reduce long-term interest rates, encourage investment and spending, and boost economic activity. By purchasing large amounts of government bonds or other assets, the central bank injects money into the economy and increases the supply of credit, which can help to lower interest rates and stimulate lending and borrowing.

Quantitative easing can be used by a central bank during times of economic recession or when interest rates are already low and traditional monetary policy tools are no longer effective. However, it can also lead to inflation if the money supply grows too quickly and outpaces economic growth, which is a concern for many economists.

Overall, quantitative easing is a controversial policy tool that is often debated among economists and policymakers, with proponents arguing that it can help to boost economic growth and reduce unemployment, while opponents argue that it can lead to inflation and other economic problems in the long run.

[nicklloydnow]

“Money supply growth fell again in January, falling even further into negative territory after turning negative in November 2022 for the first time in twenty-eight years. January's drop continues a steep downward trend from the unprecedented highs experienced during much of the past two years.

Since April 2021, money supply growth has slowed quickly, and since November, we've been seeing the money supply contract for the first time since the 1990s. The last time the year-over-year (YOY) change in the money supply slipped into negative territory was in November 1994. At that time, negative growth continued for fifteen months, finally turning positive again in January 1996.

During January 2023, YOY growth in the money supply was at -5.04 percent. That's down from December's rate of -02.19 percent and down from January 2022's rate of 6.82 percent. With negative growth now dipping below -5 percent, money-supply contraction is approaching the biggest decline we've seen in the past thirty-five years. Only during brief periods of 1989 and 1995 did the money supply fall as much. At no point for at least sixty years has the money supply fallen by more than 5.6 percent in any month.”

“U.S. money supply is falling at its fastest rate since the 1930s, a red flag for the economy and financial markets.

Money supply has now been shrinking year-on-year since December, an unprecedented development in modern times that should make investors sit up and take notice - growth, asset prices and inflation could all weaken.

It is largely a consequence of the reversal of the liquidity generated by massive post-pandemic fiscal and monetary stimulus, the Federal Reserve shrinking its balance sheet via quantitative tightening, falling bank deposits, and weak demand for and provision of credit.

(…)

Fed data on Tuesday showed that M2 money supply, a benchmark measure of how much cash and cash-like assets is circulating in the U.S. economy, fell a non-seasonally adjusted 2.2% to $21.099 trillion in February from the same period a year earlier.”

[notayesmanseconomics]

What are the consequences of the years of Quantitative Easing?

We have lived through quite an extraordinary period since Quantitative Easing began to spread on a large scale in 2008. Japan had already been trying QE for some time and if I remember correctly was up to QE 13 which did not seem to trouble anyone as much as it should have, as after all if something needs that many attempts you should question if it works at ll? Also according to the central…

[squirtone]

Quantitative Easing versus Quantitative Tightening

By definition ,Quantitative easing (QE) is defined as a monetary policy action whereby a central bank purchases predetermined amounts of government bonds or other financial assets in order to stimulate economic activity.[Wikipedia]. Quantitative easing is a novel form of monetary policy that came into wide application after the financial crisis of 2007-2008. It is intended to stabilize an…

[jesanson]

Sobriété et fin de l'abondance et de l'insouciance

Sobriété et fin de l’abondance et de l’insouciance

Le 24 août dernier n’était pas que le 450ème anniversaire du massacre de la Saint Barthélémy. Le 24 août 1572 fut en effet un bain de sang, lui-même résultat d’une guerre civile achevée par l’Édit de Nantes d’Henri IV. A vrai dire, le 24 août 2022 n’a pas grand chose à voir avec cela, même s’il peut lui aussi rester dans l’Histoire. Pourquoi cela ? Car le Président de la République y a évoqué la…

[daisyachain]

been a while since I did one of these! Takes me back

tagged by @kareenvorbarra

Last song : Númenor - Oonagh (Nightcore). No comment.

Last show: The Expanse! It’s as good as they say. Had a blast watching it with my equally-invested mother and spotting which actors were Canadian. I’ve had it on my to-watch pretty much since 2018, so I’m glad both to experience a fantastic hard sci-fi and to end the long wait. Also just finished a simultaneous watch of Run With the Wind/Kazetsuyo, an unconventional little sports anime well worth the watch.

Last movie: Has to be Revenge of the Sith as I forced my friend to watch the Skywalker Saga front to back (with The Siege of Mandalore and Rogue One coming up before the OT). I need to find and burn the soundtrack.

Currently watching: Wolf’s Rain, my very first anime. I’ve done a full rewatch maybe once? But I don’t remember it at all. Because it’s a calm and episodic show I’ve roped mom into it as well. On the B-side I’ve started KyoAni’s archery venture Tsurune and I’m rewatching Given in dub. It’s a good time with all.

Currently reading: Critically acclaimed psychological thriller Naoki Urasawa’s Monster and alt history drama Ōoku on the manga front, 00s smash hit Haruhi Suzumiya (reread) on the Light Novel front. I’m on a prose holiday after Wheel of Time, but in between I’m reading a few Murakami books at my best friend’s sister’s roommate’s request.

Current obsession: Um. Recently ended manga Dr. Stone. It’s not good. I don’t advise reading it. The women are some of the worst-treated I’ve seen (art). The production design ditto. I myself have only experienced it through vol. 1 (tried out at the library, bounced off, looked at what happened in the rest of it out of confusion, made fatal mistake), snippets of season 1 of the adaptation, and a skim of 2 arcs online.

So as one does I barely know the plot. I know half the characters and half of those are by accident. The way in which it’s bad isn’t appetizing. It may well have been written by an EU trade committee with how the politics are handled. However the Thoughts it expresses on science, technology, society, pacifism, economics provoke a reaction and I’ve Reacted.

tagging @feathertayl, @emberstreak, @licilou22, @aredhel-of-doylkien, @lamalamam? I’m sure I’ve missed something

[shawnrealty]

Tuesday Real Estate Update March 21st, 2023

QE, Sub 6%? In today’s #TREU Real Estate Market Overall Trend in the last 3 years. Financial Sector volatility and what we might see in mortgage rate. Buying New Homes in 2023 the right way. Residential vs. Commercial landscape shifting. Year over year trend may appear sluggish, but it’s more of 2021 and 2022 fast train slowdown, not market crash like some fear mongering media portrays. So…

[everyday-life-and-death]

Dont express yourself otherwise you might make a noticeable difference in the carefully catered artificial reality we coexist in.

You might upset the perfectly organised stream of information distracting everyone from the deeply unsettling situation we have all allowed to continue.

Especially do not spread any kind of genuine appreciation for something or someone when that action is not taxable and/or does not perpetuate the social conditioning we were taught to accept.

As a product, you need to remain useful otherwise you will be replaced with something new, that actually sells.

Don't ruin your opportunity to serve this wonderful system that has your best interests at heart.

[nlvxexchange]

Effects of Quantitative Easing on Foreign Exchange Movements

Effects of Quantitative Easing on Foreign Exchange Movements

Most currency trading is done by banks, either on their own behalf or on behalf of customers. They also trade with counterparties, which could be other financial institutions or non-financial organizations. 89 percent of currency trading occurs through the dollar, which is used as a vehicle currency. For example, if you want to go from the Malaysian ringgit to the South African rand, you must…