SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Mish's Global Economic Trend Analysis
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: mishedlo who wrote (87739)10/5/2008 10:45:23 PM
From: TRINDY   of 116555
 
Greetings. Could you comment on the newly created ability of the Fed to pay interest on bank reserve accounts and how this relates to the inflation/deflation debate? This ability is allegedly in the new bailout legislation. My understanding is that this means that member banks will no longer have to lend out to other banks their excess reserves in order to earn interest in the Fed Funds market. Sterilization exercises will not be need and, in consequence, it is asserted that the Fed can create money without having the deleterious effect of driving down the Fed Funds rate off target. This seems to be a new tool to dramatically reflate the economy. What do you think?

Also, Saville asserts that recent Fed actions have led to high rates of money supply expansion, even using the TMS measure. Do you agree?

I greatly, as do scores of others, appreciate your work.

Thanks.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News