Housing Links Monetary Policy to Demand and Fertility
Ed Leamer famously argued “Housing is the Business Cycle”. This paper adds color to that claim by showing monetary policy ⇒ mortgage rates ⇒ house prices ⇒ home equity borrowing ⇒ aggregate demand. Housing also affects fertility, as @JesusFerna7026 noted on the pod this week. Housing truly sits at the nexus of many macro dynamics.
Recognizing Discount Window Could Slash Reserve Demand by $1T
"If the liquidity requirement framework were revised to recognize banks’ capacity to borrow from the discount window, reserve demand could fall by a lot, perhaps about $1 trillion." https://t.co/kkmZqcwLGH
Current Monetary Policy Fails; Need Easier
If only there were a monetary policy regime that made it easier for central banks to navigate such trying times… oh wait https://t.co/XA5Pw2bVIi (1/2)
Three Paths for a New Fed‑Treasury Accord
Guest post by @Petercontibrown on three potential paths for a new Fed-Treasury accord. https://t.co/99ynaEpsMi @NickTimiraos @colbyLsmith @amacker @vtg2 @senoj_erialc https://t.co/xKOGn0fS5W
Liquidity Buffers Intended for Crises Are Being Hoarded
Great point in @SecScottBessent speech: Post-2008 liquidity buffers were designed to be spent in a crisis. Instead, they are treated as untouchable minimums and so banks hoard liquid assets rather than deploy them, making stress worse. (1/3) @vtg2 @BrendanPedersen @amacker...