An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
“The evolution of the size of the Fed's balance sheet is largely a bit of market folklore. To what extent it matters, it is the psychological effect on believers in the Quantity Theory of Money. This is a subject in the domain of anthropology, not economics.”
Completely false statement.... reserve assets are included in regulatory ratios...
Brian you have to start to analyze real US bank regulatory functions...
Not just listen to the statements of thesis being made by the platonist/dialectic Liberal Art trained MMT people who dogmatically state "reserves don't matter!"... this is a false MMT dogma...
The amount of bank reserve assets is included in at least 3 different US bank regulatory functions: the RRR, the SLR and the CCAR... the amount of reserve assets certainly matters...
2 comments:
“The evolution of the size of the Fed's balance sheet is largely a bit of market folklore. To what extent it matters, it is the psychological effect on believers in the Quantity Theory of Money. This is a subject in the domain of anthropology, not economics.”
Completely false statement.... reserve assets are included in regulatory ratios...
Brian you have to start to analyze real US bank regulatory functions...
Not just listen to the statements of thesis being made by the platonist/dialectic Liberal Art trained MMT people who dogmatically state "reserves don't matter!"... this is a false MMT dogma...
The amount of bank reserve assets is included in at least 3 different US bank regulatory functions: the RRR, the SLR and the CCAR... the amount of reserve assets certainly matters...
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