tag:blogger.com,1999:blog-8897997766931633186.post3401808980307770559..comments2024-02-14T03:21:37.506-05:00Comments on Monetary Freedom: Helicopter Drops of Money to Senior CitizensBill Woolseyhttp://www.blogger.com/profile/06330232724290161369noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8897997766931633186.post-64051822061210668102016-02-14T10:45:19.131-05:002016-02-14T10:45:19.131-05:00We don’t really have to worry all that much about ...We don’t really have to worry all that much about Fed since that will only hurt our performance, so we should be relaxed in working. I work with OctaFX broker and they got sensational benefits with having low spreads starting from just 0.2 pips to high leverage up to 1.500 while there is also 50% bonus on deposit offer available, it is completely use able and that makes thing so good to deal with for newbies like me with low investment.Zebrainnoreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-44549655937261534392009-10-22T22:11:58.685-04:002009-10-22T22:11:58.685-04:00I should clarify a few points. I agree that the m...I should clarify a few points. I agree that the monetary base isn't the best way of thinking about the stance of monetary policy. I left the wrong impression in my comment on Tyler Cowen. Because he mentioned a change in the money supply, I responded in kind. My point was that it would have had to be permanent to have the anticipated effect. But of course the actual effect would also depend on what happens to the demand for money. So I agree that a more useful way of thinking about monetary stimulus is in terms of expected NGDP growth. In that case the biggest factor explaining large changes in near term NGDP, is expected changes in long term NGDP. So a policy that permanently changes the expected trajectory of NGDP will seem like a highly effective change in the stance of monetary policy.<br /><br />When I said the Fed would have been more aggressive w/o fiscal stimulus I was thinking about two possibilities:<br /><br />1. Set an explicit nominal target.<br />or<br />2. Do aggressive QE or lower rates on ERs until inflation expectations in the TIPS markets got up to the desired level.<br /><br />I view either of those as permanent changes in policy. On the other hand OMOs that don't change the expected inflation rate are viewed as temporary by the markets, which is why they are ineffective.Scott Sumnerhttps://www.blogger.com/profile/15864819372390187247noreply@blogger.com