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Daily Archives: January 24, 2014

Monetary Policy with Abundant Liquidity: A New Operating Framework for the Fed

Monetary Policy with Abundant Liquidity: A New Operating Framework for the Fed

by Joseph E. Gagnon, Peterson Institute for International Economics and Brian Sack, D. E. Shaw Group

“The amount of assets held by the Federal Reserve has dramatically increased since 2009. It recently crossed $4 trillion and will likely peak at about $4.5 trillion. This increase is the result of the Fed’s large-scale asset purchase programs, which were intended to support economic growth. However, these purchases have created unprecedented amounts of liquidity in the financial system. Gagnon and Sack doubt that the Fed can smoothly conduct monetary policy along the lines of the previous operating framework in this environment of high liquidity. Instead of reducing bank reserves to achieve a target level for the federal funds rate, they propose a new operating framework that would allow the Fed to maintain an elevated balance sheet along with abundant liquidity in the financial system. They argue that the Fed should set the rate at which it will offer overnight reverse repurchase agreements as its policy instrument, with the interest rate paid on bank reserves set at the same level. The federal funds rate would become just one of the various overnight interest rates determined by the market in the normal transmission of monetary policy.”

Download Over 250 Free Art Books From the Getty Museum

“Yesterday, we wrote about the Wellcome Library’s opening up of its digital archives and making over 100,000 medical images freely available online. If you’ve already made your way through this choice selection (or if the prospect of viewing a 19th century leg amputation doesn’t quite pique your curiosity) have no fear. Getty Publications just announced the launch of its Virtual Library, where readersContinue Reading

LA Times – The toll of the anti-vaccination movement, in one devastating graphic

By Michael Hiltzik - January 20, 2014: “Aaron Carroll today offers a graphic depiction of the toll of the anti-vaccination movement. (H/t: Kevin Drum.) It comes from a Council on Foreign Relations interactive map of “vaccine-preventable outbreaks” worldwide 2008-2014. A couple of manifestations stand out. One is the prevalence of measles in Europe — especially Britain — and the U.S. Measles is endemic in theContinue Reading

Surgeon General report says 5.6 million U.S. children will die prematurely unless current smoking rates drop

HHS news release: “Approximately 5.6 million American children alive today – or one out of every 13 children under age 18 – will die prematurely from smoking-related diseases unless current smoking rates drop, according to a new Surgeon General’s report. Over the last 50 years, more than 20 million Americans have died from smoking. The newContinue Reading

NIH research network finds many youth have high levels of HIV

“More than 30 percent of young males who had sex with other males and who were subsequently enrolled in a government treatment and research network were found to have high levels of HIV, reported researchers from the National Institutes of Health and other institutions. The health status of the study participants, who ranged in age fromContinue Reading

8 Great Legal Research and Writing Blogs

8 Great Legal Research and Writing Blogs Posted on January 23, 2014 by Cheryl Niemeier Einstein once said “if we knew what it was we were doing, it wouldn’t be called ‘research,’ would it?” The following blogs about legal research and writing will help shorten the time it takes to get from research to knowledge: Adams Contract Drafting provides practicalContinue Reading