Investment Office Logo
The Central Bank Hallway

Articles: 1-10 / 70
Page 
 of 7

What’s up with US M1?

US narrow money M1 has surged since the elections. The stock of M1 jumped by 14.1% between the weeks ending 16 November and 30 November, a larger two-week rise than occurred in March / April in response to Fed easing.

Simon Ward, Economic Adviser
Janus Henderson Investors, Global Perspectives, December 2020

''Adam Smith’s invisible hand has disappeared.''

Quote

Michael Walsh
T. Rowe Price Insights, Investment Ideas for the Next 12 Months, December 2020

M1 Money Stock Spike

A decade of M1 vs. M2

FRED, Board of Governors of the Federal Reserve (US)
Federal Reserve Bank of St. Louis, Economic Research, December 6, 2020

''But although most reports of Powell’s speech focused on inflation, it is arguably the implications for the job market which are the most profound.''

Excerpt

Alan Mudie, Head of Investment Strategy
Societe Generale Private Banking, Weekly Update - Maximum employment - the Fed's new objective, 4 September 2020

Fed to Keep Rate Vol Based Leading to Higher Vols in Other Assets

"Risk can neither be created or destroyed, and repressing volatility in one place accentuates it in another."

Variant Perception Research, July 23, 2020

BoJ Conduct of Monetary Policy

"In addition, in order to maintain stability in financial markets, the Bank has enhanced the U.S. dollar funds-supplying operations, actively purchased exchange-traded funds (ETFs) and Japan real estate investment trusts (J-REITs), and conducted further active purchases of Japanese government bonds (JGBs) and treasury discount bills (T-Bills)."

Haruhiko Kuroda, Governor of the Bank of Japan
Bank of Japan, Semiannual Report on Currency and Monetary Control, May 12, 2020

''Policymakers dealing with challenges should seek to emulate the boldness and imagination Marvin Goodfriend showed two decades ago.''

Takeway & Excerpt

Eric S. Rosengren, Observations on Monetary Policy and the Zero Lower Bound
Federal Reserve Bank of Boston, Six takeaways from Boston Fed President Eric Rosengren’s March 6 remarks at the conference “Current Monetary Policy: The Influence of Marvin Goodfriend”, March 6, 2020

Asset Bubbles and Global Imbalances

What caused the housing boom and bust of the early 2000s? Capital inflows from emerging markets to developed economies can contribute to the formation of bubbles in asset prices. Those bubbles encourage the accumulation of debt, and the deleveraging of that debt exacerbates the decline in economic activity when the bubble bursts.

By Daisuke Ikeda, Toan Phan, and Tim Sablik
Federal Reserve Bank of Richmond, Economic Brief, No. 20-01, January 2020

ECB… Wake me up before you review

A subtle change in the ECB's reading of underlying inflation measures, the announcement of the strategy review and an owl brooch on Christine Lagarde’s jacket... this was the sum of the excitement at today’s ECB meeting

Carsten Brzeski, Chief Economist ING Germany
ING, Economic and Financial Analysis, Global Economics, 23 January 2020

''A prolonged loss of trust in the ECB risks undermining the broad public support that is necessary for central bank independence.''

Excerpt

Yves Mersch
European Central Bank, “Asset price inflation and monetary policy”, January 2020
Articles: 1-10 / 70
Page 
 of 7