tag:blogger.com,1999:blog-8897997766931633186.post4349319576732885028..comments2024-02-14T03:21:37.506-05:00Comments on Monetary Freedom: More on Money and InterestBill Woolseyhttp://www.blogger.com/profile/06330232724290161369noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-8897997766931633186.post-89820906441689246912016-01-21T08:09:14.103-05:002016-01-21T08:09:14.103-05:00To be able to make money, we need to be really goo...To be able to make money, we need to be really good at planning because without that, it is next to impossible to work out things. I am trading with OctaFX broker and thanks to their superb conditions, it really helps me work smoothly especially with 50% bonus on deposit, it is trade able bonus and the best part is, we can trade on their brilliant ECN account with just 5 dollars, so that is really awesome thing for us.Arjunnoreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-13740976510420569272009-10-12T20:10:35.063-04:002009-10-12T20:10:35.063-04:00Scott:
All I did was describe a special situation...Scott:<br /><br />All I did was describe a special situation where a change in the interest rate on reserves from below to above "the" T-bill rate would exactly offset a doubling of base money.<br /><br />If the reserve ratio on measured transactions deposits rises above one, then the M1 money multiplier can fall below one. In reality, both the reserve ratio is above one and the currency deposit ratio is greater than one, both pushing the M1 money mulitplier below one.<br /><br />The commercial banks held $1,220 billion worth of government bonds in September 2006. It dropped until January 2008, hitting a trough of $1,100 billion. Since that time it has increased to $1,360 billion. Oddly enough, the previous peak was passed just about October 2008. <br /><br />So, the banks have increased both reserve balances and their holdings of government bonds. Presumably, because the Fed began paying interest on reserve balances, banks increased their holdings of government bonds less than they would have. We know that all the measures of the money supply have increased. It is just they have not not increased as much as velocity has fallen.Bill Woolseyhttp://monetaryfreedom-billwoolsey.blogspot.comnoreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-9007278793223675872009-10-12T15:31:18.778-04:002009-10-12T15:31:18.778-04:00Bill, I don't follow your argument. Are you ...Bill, I don't follow your argument. Are you assuming that the M1 multiplier cannot fall below 1? It already has. Bank holdings of T-bills could be much larger than transactions deposits. Am I misunderstanding something here?Scott Sumnerhttps://www.blogger.com/profile/15864819372390187247noreply@blogger.com