What is Helicopter Money ? Why the Central bankers are using the term so frequently now?
The instant reference that can be drawn towards the Hollywood/Bollywood, kind of Robbin hood stories where the hero/villain throws money from the helicopter in the villages. Jokes apart
Getting back to economics “Helicopter money” is the term economists and market-watchers use for an aggressive form of monetary stimulus — the government’s power to print money — to try to spur growth and get inflation higher. There had been buzz that the Bank of Japan could move in that direction, but it elected to take only a smaller action. The bank did say it would do a “comprehensive review” of policy in the months to come that could presage more coordination between the bank and the Japanese government. Continue reading “What is Helicopter Money?”
As Federal Reserve Chairman Ben Bernanke’s tenure draws to a close, these are the top 10 take away from the last night :
1. Janet Yellen voter to taper
2. Taper nothing more than symbolic – $10B split between Treasuries and MBS
3. Fed changes forward guidance – Low rates now appropriate “well past the time that the unemployment rate drops below 6.5%”
4. Bernanke believes FOMC will taper QE probably at each meeting, $10B each time with end of QE before 2014 year end Continue reading “Top 10 Takeaways from FOMC and Bernanke”
NEW HAVEN – The global economy could be in the early stages of another crisis. Once again, the US Federal Reserve is in the eye of the storm.
As the Fed attempts to exit from so-called quantitative easing (QE) – its unprecedented policy of massive purchases of long-term assets – many high-flying emerging economies suddenly find themselves in a vise. Currency and stock markets in India and Indonesia are plunging, with collateral damage evident in Brazil, South Africa, and Turkey.
The Fed insists that it is blameless – the same absurd position that it took in the aftermath of the Great Crisis of 2008-2009, when it maintained that its excessive monetary accommodation had nothing to do with the property and credit bubbles that nearly pushed the world into the abyss. Continue reading “The Next Global Crisis could be in Formation”
While going through the RBI and research analyst conference, The RBI addressed four major risk in its latest policy,and biggest and the first risk factor stems from our vulnerability in the external sector, in particular sudden stop and reversal of capital flows that we saw over the last 10 weeks. It is not clear if financial markets have factored in the full impact of the prospective tapering of QE or whether we will have some spillover impact every time there is some announcement from advanced economies, in particular the US Fed. Continue reading “The RBI and the Research analyst call”
Well this is brilliant on Saturday as a read 🙂
The Federal Reserve is awaiting
That prices may start re-inflating,
So they can foresee
Whose tapering they’ve been debating.
The Fed will not bother to taper
Its purchase of Treasury paper
‘Til the jobless rate now
And inflation allow
An end to their stimulus caper.
To avoid causing stock volatility
‘Til he can discern
A sustainable turn
To price and employment stability.