Federal Reserve

Archive for Federal Reserve

Federal Reserve Banks: Total Assets vs. Reserve Balances

Here’s something interesting, possibly disturbing, that I just noticed while prepping for a radio interview: The red line shows that since the “taper” ended, the Fed has been treading water with its assets, rolling over bonds as they mature but not letting its total holdings drop. On the other hand, the blue line shows the […]

The Fed’s (Belated) Birthday

This ran on the actual anniversary, but I think I forgot to post it here. Anyway, my take in the Daily Caller on the Fed.

Science Is Prediction: Back-Testing the Market Monetarist-Endorsed Ted Cruz Explanation for the 2008 Crash

(Please don’t lecture me on the post title: I am making a wisecrack related to Dan’s very useful advice on a previous post.) Recently Ted Cruz was grilling Janet Yellen. So far, so good. But then he said: Senator Cruz: In the summer of 2008, responding to rising consumer prices, the Federal Reserve told markets […]

Trying to Pass the Market Monetarist Turing Test

[UPDATE below.] Suppose someone asks you, “What was the stance of US monetary policy in mid-1980? Pretend you are a Market Monetarist answering.” BOB TRYING TO PASS AS A MARKET MONETARIST: First thing, we would not look at interest rates; that is a totally misleading indicator. As Sumner tells us in this post, “Interest rates […]

“Fed on Trial”

C-SPAN has posted the footage from FreedomFest in Vegas this past July. If you’re bored, at least check out 12:20 when Kennedy hugs me. Bucket list item, check.

Question for Bernanke?

I got this inquiry, with permission to post here: Message: hey mr. murphy, i am a junior in high school and this fall, ben bernanke will be speaking at my school. as a follower of yours, i agree completely with your views, and love your wit. i expect that after his speech we will be […]

Scott Sumner, Vindicated

This is the closest I’ll come to an “I told you so” victory lap. (In the future I may refer to the warnings people in my camp have been issuing, especially if people claim I’m making it up, but I will try not to be snarky about it.) Here’s Scott 9 days ago, talking about […]

Bernanke Bask

Hey kids, I am 95% sure that in December 2008 Ben Bernanke was called before Congress to testify about all the emergency loan programs etc. They asked him to divulge the names of the recipients of the loans, and he said no, it would defeat the purpose of the program (because investors/depositors would dump weak […]