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MOSLER'S LAW: There is no financial crisis so deep that a sufficiently large increase in public spending cannot deal with it.

Archive for the 'TAF' Category


TAF size increased

Posted by WARREN MOSLER on 7th October 2008


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As I’ve said all along, it needs to be in unlimited quantities with a set interest rate.

It’s a pricing mechanism, not a quantity mechanism.

They also need to relax collateral requirements to include commercial and residential whole loans, and all other legal bank assets of solvent banks.


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Posted in Interest Rates, TAF | No Comments »

Re: Fed study on TAF

Posted by WARREN MOSLER on 29th July 2008


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>    
>    On Tue, Jul 29, 2008 at 4:05 AM, Andrea wrote:
>    
>    In case you haven’t seen this yet: A Fed study that finds that
>    Taf has lowered Libor.
>    
>    http://www.newyorkfed.org/research/staff_reports/sr335.html
>    
>    

right, thanks, as if they needed to fund a study to figure that out!

It’s like doing a study that shows the repo rate goes down when the fed lowers its ’stop’ on repo.

(Too bad they didn’t use this study to show they should set a rate for the TAF and let quantity float, instead of setting a quantity and having an auction.)

It’s this kind of expense that gives govt. a govt. spending negative connotation.

all the best!

warren


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Posted in Credit, Email, Fed, TAF | No Comments »