Trump Shock: Selgin,Coppola and Lambert
This article was first published by me on Talkmarkets: http://www.talkmarkets.com/content/bonds/trump-shock-selgincoppola-and-lambert?post=116521&uid=4798
The discussion of asset inflation and the failure to get money into the hands of real people takes on an ever more urgent conversation since Donald Trump has been elected president. The Trump Shock may be real. And if and when The Donald should stimulate the economy is a real issue as well, as we can see later in this article. But we have to know why asset purchasing by the Fed did little for main street.
George Selgin has discussed the problem of asset purchases on the CATO Alt-M blog. He essentially agrees with Frances Coppola, that asset purchases have not caused a broad prosperity as they should have. He gives a detailed explanation as to the reason for this. It all revolves around interest on reserves. He said:
As for interest on reserves, although it failed to establish an above-zero “lower bound” on the effective federal …
The discussion of asset inflation and the failure to get money into the hands of real people takes on an ever more urgent conversation since Donald Trump has been elected president. The Trump Shock may be real. And if and when The Donald should stimulate the economy is a real issue as well, as we can see later in this article. But we have to know why asset purchasing by the Fed did little for main street.
George Selgin has discussed the problem of asset purchases on the CATO Alt-M blog. He essentially agrees with Frances Coppola, that asset purchases have not caused a broad prosperity as they should have. He gives a detailed explanation as to the reason for this. It all revolves around interest on reserves. He said:
As for interest on reserves, although it failed to establish an above-zero “lower bound” on the effective federal …