Nathan Tankus on the Future of MMT and How to Avoid U.S. Debt Default
Macro Musings with David Beckworth
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The Role of Monitorism in the Economy
The Fed is still interest rate targeting. It's just dirty interest rate targeting, says Julian Zelizer. They're instead managing interest rates by the spread between the discount rate and the federal funds rate. When you try to control the base money, when you try to Control settlement balances, the discount window is still there. So when you do it, you pull tighter, you remove what you can say is kind of non borrowed settlement balances. That leads more and more actors who are willing to pay more and more pay higher interest because they don't want to be the discount window. Your market funding will dry up. There are bigger banks. The banking system is consolidating. And so as a
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