@Kling, you are much too generous to call the Fed "shadow banking", and that they operate some sort of enconomic enterprise- with a balance sheet of assets and liabilities. Instead the Fed is sim...
http://www.arnoldkling.com/blog/the-fed-as-shadow-bank/#comment-458422
"Some people call the classic Fed liabilities 'money' or 'high-powered money.' But I do not find that so exciting. In my view, the market decides what to use as money." What is your response to t...
http://www.arnoldkling.com/blog/the-fed-as-shadow-bank/#comment-458364
The bad thing is too few ideas, the major ones that are unsustainable. It is true there risk assets and risk free assets but crowding out couldn't exist if crowding in couldn't as well. More gove...
http://www.arnoldkling.com/blog/the-fed-as-shadow-bank/#comment-458359
It's not so clear to me what additional insight we gain by thinking of the Fed as "just another shadow bank". It's highly misleading to think of interest on reserves as the interest rate that the...
http://www.arnoldkling.com/blog/the-fed-as-shadow-bank/#comment-458355