Attention Economy


Tuesday, December 19, 2023

The Fed and the Financial System

Why Central Banks Should (but Might Not) Keep the Market Flooded with Money
https://www.wsj.com/economy/central-banking/why-central-banks-should-but-might-not-keep-the-market-flooded-with-money-8f3caba0
Rate setters are under pressure to ditch the “floor system” they have used to steer monetary policy since the global financial crisis
 
Fed’s Newest Tool Has Become More Attractive on Rate-Cut Bets
https://www.bloomberg.com/news/articles/2023-12-19/fed-s-newest-tool-has-become-more-attractive-amid-rate-cut-bets 

The Federal Reserve Deserves a Pat on the Back
https://www.wsj.com/articles/the-federal-reserve-deserves-a-pat-on-the-back-reserve-liquidity-cash-c8bb8b8f
Paying interest on reserves allows the Fed to provide liquidity and maintain financial stability.

It’s time to reassess the ‘dark arts’ of central banks
https://www.telegraph.co.uk/business/2023/12/31/central-banks-must-reevaluate-monetary-dark-arts/
Economic policies look more like the result of wacky experiments than scientific theory