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#quantitativetightening — Public Fediverse posts

Live and recent posts from across the Fediverse tagged #quantitativetightening, aggregated by home.social.

  1. Best and clearest explanation of Govt #Bonds that I have ever read, it’s from Prof Richard Murphy’s blog (at taxresearch.org,uk ).

    ” Governments do not borrow because they need money. The government spends first. In doing so, it creates deposits and reserves within the banking system. Taxation then removes some of that money from circulation in the economy. What is left, the deficit, is simply the money that the government has spent but has not yet taxed back.”
    “{…} anyone buying a newly issued gilt or government bond does not provide the government with spending power that it previously lacked. Instead, the purchaser exchanges one government liability for another.”

    #Economics101 #MMT #GovtBonds #BondMarkets #QuantitativeTightening and #QuantitativeEasing #ReserveBank #CahsRate #BondInterest

    My understanding of the above:

    A Bond is like the govt giving me an IOU against some of its own currency I exchange for it with a guaranteed repayment in 10 yrs time at set interest. In effect the govt has just removed cash from the economy (fiscal policy) by sequestering it in the IOU (it does this to cool an overheating economy).

    I am not allowed to ‘spend’ that IOU, but I can #Trade it for a quick profit (if I can find a buyer). Or, I can use the IOU to secure a loan which I can then spend or invest. Economic activity is thus generated without the govt injecting money (spending) into the economy (it would normally spend to stimulate a flagging economy).

    In Australia, Govt bonds are issued by the Reserve Bank (responsible for monetary policy to keep inflation in check and a determined level of unemployment). It can vary the interest rates of these bonds and set the official cash rate to steer the economy where it thinks it ought to be (neo-classical economics here).

    So the selling of Govt bonds is not ‘borrowing’ at all just a means to control the amount of cash currency in the economy to keep it bubbling along some predetermined parameters. There is a lot more to this ‘control’ and Murphy addreses it in the article and in the process gives us one of the primary features of the Modern Money Theory (MMT).

    I think I have that right. Happy to get corrected.

    Read more:
    taxresearch.org.uk/Blog/2026/0

  2. Best and clearest explanation of Govt #Bonds that I have ever read, it’s from Prof Richard Murphy’s blog (at taxresearch.org,uk ).

    ” Governments do not borrow because they need money. The government spends first. In doing so, it creates deposits and reserves within the banking system. Taxation then removes some of that money from circulation in the economy. What is left, the deficit, is simply the money that the government has spent but has not yet taxed back.”
    “{…} anyone buying a newly issued gilt or government bond does not provide the government with spending power that it previously lacked. Instead, the purchaser exchanges one government liability for another.”

    #Economics101 #MMT #GovtBonds #BondMarkets #QuantitativeTightening and #QuantitativeEasing #ReserveBank #CahsRate #BondInterest

    My understanding of the above:

    A Bond is like the govt giving me an IOU against some of its own currency I exchange for it with a guaranteed repayment in 10 yrs time at set interest. In effect the govt has just removed cash from the economy (fiscal policy) by sequestering it in the IOU (it does this to cool an overheating economy).

    I am not allowed to ‘spend’ that IOU, but I can #Trade it for a quick profit (if I can find a buyer). Or, I can use the IOU to secure a loan which I can then spend or invest. Economic activity is thus generated without the govt injecting money (spending) into the economy (it would normally spend to stimulate a flagging economy).

    In Australia, Govt bonds are issued by the Reserve Bank (responsible for monetary policy to keep inflation in check and a determined level of unemployment). It can vary the interest rates of these bonds and set the official cash rate to steer the economy where it thinks it ought to be (neo-classical economics here).

    So the selling of Govt bonds is not ‘borrowing’ at all just a means to control the amount of cash currency in the economy to keep it bubbling along some predetermined parameters. There is a lot more to this ‘control’ and Murphy addreses it in the article and in the process gives us one of the primary features of the Modern Money Theory (MMT).

    I think I have that right. Happy to get corrected.

    Read more:
    taxresearch.org.uk/Blog/2026/0

  3. Best and clearest explanation of Govt #Bonds that I have ever read, it’s from Prof Richard Murphy’s blog (at taxresearch.org,uk ).

    ” Governments do not borrow because they need money. The government spends first. In doing so, it creates deposits and reserves within the banking system. Taxation then removes some of that money from circulation in the economy. What is left, the deficit, is simply the money that the government has spent but has not yet taxed back.”
    “{…} anyone buying a newly issued gilt or government bond does not provide the government with spending power that it previously lacked. Instead, the purchaser exchanges one government liability for another.”

    #Economics101 #MMT #GovtBonds #BondMarkets #QuantitativeTightening and #QuantitativeEasing #ReserveBank #CahsRate #BondInterest

    My understanding of the above:

    A Bond is like the govt giving me an IOU against some of its own currency I exchange for it with a guaranteed repayment in 10 yrs time at set interest. In effect the govt has just removed cash from the economy (fiscal policy) by sequestering it in the IOU (it does this to cool an overheating economy).

    I am not allowed to ‘spend’ that IOU, but I can #Trade it for a quick profit (if I can find a buyer). Or, I can use the IOU to secure a loan which I can then spend or invest. Economic activity is thus generated without the govt injecting money (spending) into the economy (it would normally spend to stimulate a flagging economy).

    In Australia, Govt bonds are issued by the Reserve Bank (responsible for monetary policy to keep inflation in check and a determined level of unemployment). It can vary the interest rates of these bonds and set the official cash rate to steer the economy where it thinks it ought to be (neo-classical economics here).

    So the selling of Govt bonds is not ‘borrowing’ at all just a means to control the amount of cash currency in the economy to keep it bubbling along some predetermined parameters. There is a lot more to this ‘control’ and Murphy addreses it in the article and in the process gives us one of the primary features of the Modern Money Theory (MMT).

    I think I have that right. Happy to get corrected.

    Read more:
    taxresearch.org.uk/Blog/2026/0

  4. Best and clearest explanation of Govt #Bonds that I have ever read, it’s from Prof Richard Murphy’s blog (at taxresearch.org,uk ).

    ” Governments do not borrow because they need money. The government spends first. In doing so, it creates deposits and reserves within the banking system. Taxation then removes some of that money from circulation in the economy. What is left, the deficit, is simply the money that the government has spent but has not yet taxed back.”
    “{…} anyone buying a newly issued gilt or government bond does not provide the government with spending power that it previously lacked. Instead, the purchaser exchanges one government liability for another.”

    #Economics101 #MMT #GovtBonds #BondMarkets #QuantitativeTightening and #QuantitativeEasing #ReserveBank #CahsRate #BondInterest

    My understanding of the above:

    A Bond is like the govt giving me an IOU against some of its own currency I exchange for it with a guaranteed repayment in 10 yrs time at set interest. In effect the govt has just removed cash from the economy (fiscal policy) by sequestering it in the IOU (it does this to cool an overheating economy).

    I am not allowed to ‘spend’ that IOU, but I can #Trade it for a quick profit (if I can find a buyer). Or, I can use the IOU to secure a loan which I can then spend or invest. Economic activity is thus generated without the govt injecting money (spending) into the economy (it would normally spend to stimulate a flagging economy).

    In Australia, Govt bonds are issued by the Reserve Bank (responsible for monetary policy to keep inflation in check and a determined level of unemployment). It can vary the interest rates of these bonds and set the official cash rate to steer the economy where it thinks it ought to be (neo-classical economics here).

    So the selling of Govt bonds is not ‘borrowing’ at all just a means to control the amount of cash currency in the economy to keep it bubbling along some predetermined parameters. There is a lot more to this ‘control’ and Murphy addreses it in the article and in the process gives us one of the primary features of the Modern Money Theory (MMT).

    I think I have that right. Happy to get corrected.

    Read more:
    taxresearch.org.uk/Blog/2026/0

  5. Best and clearest explanation of Govt #Bonds that I have ever read, it’s from Prof Richard Murphy’s blog (at taxresearch.org,uk ).

    ” Governments do not borrow because they need money. The government spends first. In doing so, it creates deposits and reserves within the banking system. Taxation then removes some of that money from circulation in the economy. What is left, the deficit, is simply the money that the government has spent but has not yet taxed back.”
    “{…} anyone buying a newly issued gilt or government bond does not provide the government with spending power that it previously lacked. Instead, the purchaser exchanges one government liability for another.”

    #Economics101 #MMT #GovtBonds #BondMarkets #QuantitativeTightening and #QuantitativeEasing #ReserveBank #CahsRate #BondInterest

    My understanding of the above:

    A Bond is like the govt giving me an IOU against some of its own currency I exchange for it with a guaranteed repayment in 10 yrs time at set interest. In effect the govt has just removed cash from the economy (fiscal policy) by sequestering it in the IOU (it does this to cool an overheating economy).

    I am not allowed to ‘spend’ that IOU, but I can #Trade it for a quick profit (if I can find a buyer). Or, I can use the IOU to secure a loan which I can then spend or invest. Economic activity is thus generated without the govt injecting money (spending) into the economy (it would normally spend to stimulate a flagging economy).

    In Australia, Govt bonds are issued by the Reserve Bank (responsible for monetary policy to keep inflation in check and a determined level of unemployment). It can vary the interest rates of these bonds and set the official cash rate to steer the economy where it thinks it ought to be (neo-classical economics here).

    So the selling of Govt bonds is not ‘borrowing’ at all just a means to control the amount of cash currency in the economy to keep it bubbling along some predetermined parameters. There is a lot more to this ‘control’ and Murphy addreses it in the article and in the process gives us one of the primary features of the Modern Money Theory (MMT).

    I think I have that right. Happy to get corrected.

    Read more:
    taxresearch.org.uk/Blog/2026/0

  6. 📉 Fed can keep trimming balance sheet
    Governor Waller says the central bank still has room to shrink its holdings—possibly down to ~$5.8 T—by letting securities roll off naturally.
    👉 Full story: bluewaterhealthyliving.com/new

    #Fed #BalanceSheet #QuantitativeTightening #Waller #GBSMedia

  7. 📉 Fed can keep trimming balance sheet
    Governor Waller says the central bank still has room to shrink its holdings—possibly down to ~$5.8 T—by letting securities roll off naturally.
    👉 Full story: bluewaterhealthyliving.com/new

    #Fed #BalanceSheet #QuantitativeTightening #Waller #GBSMedia

  8. 📉 Fed can keep trimming balance sheet
    Governor Waller says the central bank still has room to shrink its holdings—possibly down to ~$5.8 T—by letting securities roll off naturally.
    👉 Full story: bluewaterhealthyliving.com/new

    #Fed #BalanceSheet #QuantitativeTightening #Waller #GBSMedia

  9. 📉 Fed can keep trimming balance sheet
    Governor Waller says the central bank still has room to shrink its holdings—possibly down to ~$5.8 T—by letting securities roll off naturally.
    👉 Full story: bluewaterhealthyliving.com/new

    #Fed #BalanceSheet #QuantitativeTightening #Waller #GBSMedia

  10. Diese Meldung zu den Zinsen von #dpa und @FR ist nur die halbe Meldung, da in der Sitzung eine sehr wichtige Entscheidung der #fed verkündet wurde:

    Der Verkauf von Anleihen wird von 60 auf 25 Mrd. Dollar pro Monat heruntergefahren. Dadurch wird der Wirtschaft weniger Liquidität entzogen.

    Das Herunterfahren des #QuantitativeTightening ist eine bemerkenswerte geldpolitische Entscheidung, die wichtiger sein könnte als ein Viertelpunkt beim Zins!

    fr.de/wirtschaft/fed-tastet-le

  11. Diese Meldung zu den Zinsen von #dpa und @FR ist nur die halbe Meldung, da in der Sitzung eine sehr wichtige Entscheidung der #fed verkündet wurde:

    Der Verkauf von Anleihen wird von 60 auf 25 Mrd. Dollar pro Monat heruntergefahren. Dadurch wird der Wirtschaft weniger Liquidität entzogen.

    Das Herunterfahren des #QuantitativeTightening ist eine bemerkenswerte geldpolitische Entscheidung, die wichtiger sein könnte als ein Viertelpunkt beim Zins!

    fr.de/wirtschaft/fed-tastet-le

  12. Diese Meldung zu den Zinsen von #dpa und @FR ist nur die halbe Meldung, da in der Sitzung eine sehr wichtige Entscheidung der #fed verkündet wurde:

    Der Verkauf von Anleihen wird von 60 auf 25 Mrd. Dollar pro Monat heruntergefahren. Dadurch wird der Wirtschaft weniger Liquidität entzogen.

    Das Herunterfahren des #QuantitativeTightening ist eine bemerkenswerte geldpolitische Entscheidung, die wichtiger sein könnte als ein Viertelpunkt beim Zins!

    fr.de/wirtschaft/fed-tastet-le

  13. John Wright’s predictions of what would happen with a tight money and high interest rate policy happened. Following Volcker, Alan Greenspan was appointed and led a supposedly booming economy. He also told people that it was impossible to know an economic bubble was happening while it was happening, which is absolutely absurd.

    medium.com/@sara_causey/turkis

    #economy #inflation #thefed #quantitativeeasing #QuantitativeTightening #riggedeconomy #cronycapitalism #turkey #turkisheconomy

  14. John Wright’s predictions of what would happen with a tight money and high interest rate policy happened. Following Volcker, Alan Greenspan was appointed and led a supposedly booming economy. He also told people that it was impossible to know an economic bubble was happening while it was happening, which is absolutely absurd.

    medium.com/@sara_causey/turkis

    #economy #inflation #thefed #quantitativeeasing #QuantitativeTightening #riggedeconomy #cronycapitalism #turkey #turkisheconomy