Re: increases money supply over time?
Fred Foldvary Wrote: "The Fed buys bond and in effect pays with a check." Okay. To buy back bonds, it must have sold them at some time in the past. This process of selling & then buying back bonds doesn't net to zero? Is the multiplier larger for buying bonds than selling? --- I don't know anything about blue lines, with the exception of "Blue Lines," the brilliant album by trip-hop artists Massive Attack. Sorry. __ Do you Yahoo!? Yahoo! Hotjobs: Enter the "Signing Bonus" Sweepstakes http://hotjobs.sweepstakes.yahoo.com/signingbonus
Re: Quantifying the unquantifiable?
"Roger J. Forsgren" <[EMAIL PROTECTED]> wrote: > Here's a problem I have with economics, and also with engineering, to tell the truth: it's this idea that if we can't quantify a thing, then it doesn't exist.< Ask him about the Heisenberg uncertainty principle, and Goedel in mathematics. > Of course in engineering it's a lot easier to attach quantities to things, plus or minus > since we deal in physical entities. They only appear to be so. > I guess it comes down to this: what's it worth to have a huge national goal, like going to Mars? The worth is subjective. >they can't quantify the inspiration factor for lack of a better word.< How do you know? > My question is, as someone who makes economic analysis their profession, how do you respond to criticisms like the above, and explain it to laypeople?< If they make assertions, ask them how they know. Fred Foldvary
Re: How do I convince New Agers that not everybody should get the same wage?
Fred Foldarvy wrote: "'The sentiment seems to revolve around social justice: No person is worth any other, etc.' So long as this stays within the club, what is the harm?" Well, they're doing this to try to make the world a better place. If they choose to design the currency project so that the equal wage philosophy creates a distortion, it seems reasonable that such a distortion will make the project less effective in making the world a better place. It's not that I want to rain on anybody's parade. Well, not in this particular instance, anyway. And I do like "Blue Lines." Outstanding album. Anton Sherwood wrote: "You've just expanded my knowledge of SbSp at least threefold. Proud?" Heh, heh, heh. <---Evil Laugh - Thanks for the tips, everybody. __ Do you Yahoo!? Yahoo! Hotjobs: Enter the "Signing Bonus" Sweepstakes http://hotjobs.sweepstakes.yahoo.com/signingbonus
Re: Quantifying the unquantifiable?
Roger Forsgren wrote: "My question is, as someone who makes economic analysis their profession, how do you respond to criticisms like the above, and explain it to laypeople?" You could point out that it HAS been done. E.g., an old prof. of mine was hired to put dollar values on safety features required in mobile homes. According to him, his estimates were more-or-less on the money. I'm sure the others can come up w/ more examples. You could also point out that at least two major industries, gambling & insurance, are built on people's preferences for risk. That's pretty abstract. Just because the math is easier, that doesn't make it any less abstract than preference for national pride. Lastly, I would say that just because an analysis hasn't captured inspiration quantitatively, that doesn't mean that it is useless or egregiously inaccurate. He is the one making the claim. Have him defend it. __ Do you Yahoo!? Yahoo! Hotjobs: Enter the "Signing Bonus" Sweepstakes http://hotjobs.sweepstakes.yahoo.com/signingbonus
Re: Three Fed tools, which increases money supply over time?
I have found the best resource for understanding the Federal Reserve is reading its annual reports, especially the financial statements near the very end. Go here: http://www.federalreserve.gov/boarddocs/rptcongress/annual02/default.htm In my view, there's nothing like real numbers to get your brain juices flowing. Note the $20-30 million that the Fed pays to the US Treasury each year. Exercise for the reader: why does it make that payment? -gil -Original Message- From: ArmChair List [mailto:[EMAIL PROTECTED] On Behalf Of john hull Sent: Tuesday, January 13, 2004 3:13 PM To: [EMAIL PROTECTED] Subject: Three Fed tools, which increases money supply over time? I have blanked and I cannot shake it. My apologies for what seems a bonehead question. (Certainly not my first.) Old textbooks aren't helping me, either. There are three money supply tools used by the Fed. It can buy & sell bonds, it can change the reserve requirement, or it can change the interest rate it charges banks on overnight loans, right? If the money supply is increasing over time, then it can't be because of the second two, since they can only go so low. Is it the first that causes money supply to grow at x% per year? How does this happen? Losing my mind, jsh __ Do you Yahoo!? Yahoo! Hotjobs: Enter the "Signing Bonus" Sweepstakes http://hotjobs.sweepstakes.yahoo.com/signingbonus
Re: Three Fed tools, which increases money supply over time?
In a message dated 1/14/04 11:16:54 AM, [EMAIL PROTECTED] writes: >In my view, there's nothing like real numbers to get your brain juices >flowing. Note the $20-30 million that the Fed pays to the US Treasury >each year. Exercise for the reader: why does it make that payment? > >-gil The Depression-era changes to the Federal Reserve Act allow the Fed to keep half the money the Treasury pays to it in interest on the Treasury debt the Fed holds, and pay the other half back to the Treasury. Under the original act the Fed had to pay back all the interest. David
Re: increases money supply over time?
Fred Foldvary Wrote: >>"The Fed buys bond and in effect pays with a check." john hull <[EMAIL PROTECTED]> wrote: >To buy back bonds, it must have sold them at >some time in the past. No. The Fed does not buy the bonds "back". They buy bonds in the market, just as any buyer would. If you buy bonds, that does not imply that you sold them previously. > I don't know anything about blue lines, Some emails in this list in HTML have a blue line at the left. When I reply, that verkakte blue line is still there. I turned it off in this reply by using plain text rather than HTML. Fred Foldvary
