Liquidity Archive

Italian article this am

Misrepresents what I say a bit, but they do have my picture next to JFK! ;) The IMF: sovereign currency, no longer the monopoly of the banks Eliminate the public debt of the United States at once, and do the same with Great Britain, Italy, Germany, Japan, Greece. At the same time ...Read More

Re: liquidity or insolvency–does it matter?

(email with Randall Wray) On Dec 15, 2007 9:05 PM, Wray, Randall wrote: > By ________ > > This time the magic isn’t working. > > Why not? Because the problem with the markets isn’t just a lack of liquidity – there’s also a fundamental problem of solvency. > > Let me ...Read More

Fed regs with comments

Note they’ve also added the international arrangements as per my discussion earlier today. The same recommendations suggested in August. 7 Lending by the Federal Reserve The Federal Reserve’s authority to extend loans is a potentially powerful tool with which it can stimulate aggregate demand. Loans to depository institutions can help spur credit ...Read More

More detail on the liquidity facility

looks a lot like the recommendations Karim emailed to them: An article in the Financial Times: Fed officials have dusted down this proposal and adapted it to address the current credit market crisis. Vincent Reinhart, a fellow at the American Enterprise Institute and former chief monetary economist at the Fed, says this ...Read More