tag:blogger.com,1999:blog-6297413898275266606.post2015500204898337790..comments2024-03-27T18:15:59.096+08:00Comments on Economics Malaysia: OMG! QE3 To Boost Inflation…Nothishamhhttp://www.blogger.com/profile/06265308095732759923noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-6297413898275266606.post-53406844496636063292012-09-19T14:28:48.874+08:002012-09-19T14:28:48.874+08:00Should have thought of this earlier - the details ...Should have thought of this earlier - the details of QE1 and QE2 are a matter of public record:<br /><br />http://federalreserve.gov/monetarypolicy/bst.htm<br /><br />The interesting point is that QE2 kicked off just as the Fed was withdrawing its liquidity support operations, so quite a bit of the asset buying was really changing the composition of the Fed's balance sheet but not necessarilyhishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-85769266864174191102012-09-14T16:36:33.055+08:002012-09-14T16:36:33.055+08:00Okay, forget what I wrote about m-o-m and coincide...Okay, forget what I wrote about m-o-m and coincidence. I just realized it doesn't negate the endogeneity point your raised.__marshttps://www.blogger.com/profile/03711810297204287995noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-59670624694553185602012-09-14T16:29:26.519+08:002012-09-14T16:29:26.519+08:00True about endogenous money supply growth, but loo...True about endogenous money supply growth, but looking at m-o-m, the big spikes happened during the two periods of the QE. It's hard for me to accept that as coincidence. (Although, looking at past crisis, a spike seems like a guaranteed occurence and I haven't checked why... possibly drastic rate cuts?)<br /><br />Another potential hint of increase in money supply is compare excess Hafiz Noor Shamshttp://maddruid.comnoreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-20148321636285120902012-09-14T12:22:32.027+08:002012-09-14T12:22:32.027+08:00Hafiz,
You're absolutely right, but I think t...Hafiz,<br /><br />You're absolutely right, but I think that's the wrong way to look at it. You can still get endogenous money growth, without an exogenous monetary injection. <br /><br />If Bernanke and the FOMC are right in thinking that the portfolio channel is important (for the US at least), lowering long term interest rates alone would boost credit creation and thus endogenous money hishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.com