The Market Monetarist

What the US Treasury and the Federal Reserve should announce: 1) The fiscal house needs to be put in order right now: a) Introduction of a federal VAT at a rate of 10%. b) Social Security: the retirement age will immediately be increased by two years.

The US Treasury said this afternoon (European time), in a press release, that it will at least double the size of its liquidity support buybacks of long-dated government bonds.

US vice president JD Vance has said in public that he does not think the dollar’s reserve currency status is good for the United States.

A couple of days ago, on 1 August, Brad Setser posted that The Economist had picked a good week for a currency cover, and that the Big Mac index agreed with his own work in putting the yuan around 30% undervalued.

Second-quarter GDP figures arrived this week for both the US and the euro area, and the coverage has been almost entirely about a single number.

If you look at the financial markets, you can “read” what investors are thinking about the economic outlook – are the shocks positive or negative, and are they supply or demand shocks?

“If he’s alive or dead it doesn’t matter.

Kevin Warsh’s first press conference as Fed chairman was far better than I expected.

Trump says Powell has been too tight.

The chief executives of the world’s most powerful artificial intelligence companies have been saying remarkable things about the future of work.