The new Substack page does not enable the reader to increase the font size of the text in the page. Makes reading the posted material challenging. What will the charts, graphs, and equations look like on the Substack site? Will those be legible? Some are not legible on the Blogger pages, but increasing the text size is possible on Blogger, whereas it appears not to be possible on Substack if the first posting is an example.
Read the WSJ piece a have no disagreement with the positive things said about abundant reserves and IOR. But, does the new monetary regime come without costs?
In the scarce reserves regime, Fed operations funded themselves. That's no longer the case. You might argue that under scarce reserves there would still be interest payments on government bonds. Since the Fed purchases bonds in order to create the ample reserves, IOR is just a another form of interest payment on government debt. But, IOR is always going to be at short term rates so Treasury can't restructure 10% of it's debt when rates are low. Sure, it's not a huge amount of money as government finance goes but it seems pretty close to a kind of perpetual bank subsidy you complained bout when it came to differential money market rates.
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Thanks to a few abusers I am now moderating comments. I welcome thoughtful disagreement. I will block comments with insulting or abusive language. I'm also blocking totally inane comments. Try to make some sense. I am much more likely to allow critical comments if you have the honesty and courage to use your real name.
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You tried to visit:https://www.grumpy-economist.com/
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You tried to visit:https://www.grumpy-economist.com/
The new Substack page does not enable the reader to increase the font size of the text in the page. Makes reading the posted material challenging. What will the charts, graphs, and equations look like on the Substack site? Will those be legible? Some are not legible on the Blogger pages, but increasing the text size is possible on Blogger, whereas it appears not to be possible on Substack if the first posting is an example.
ReplyDeleteview, zoom in, seems to work.
DeleteViewed on an Android OS tablet, the zoom-in and zoom-out function is disabled. There seem to be no zoom +/- controls embedded in the website itself.
DeleteRead the WSJ piece a have no disagreement with the positive things said about abundant reserves and IOR. But, does the new monetary regime come without costs?
ReplyDeleteIn the scarce reserves regime, Fed operations funded themselves. That's no longer the case. You might argue that under scarce reserves there would still be interest payments on government bonds. Since the Fed purchases bonds in order to create the ample reserves, IOR is just a another form of interest payment on government debt. But, IOR is always going to be at short term rates so Treasury can't restructure 10% of it's debt when rates are low. Sure, it's not a huge amount of money as government finance goes but it seems pretty close to a kind of perpetual bank subsidy you complained bout when it came to differential money market rates.