CFS Director Barnett and Divisia Monetary Statistics Featured in Businessweek

This week’s Bloomberg Businessweek features CFS Director William A. Barnett and the CFS Divisia money supply.

The article highlights some of the unique aspects of CFS monetary and financial data as well as how conclusions regarding the economy and markets might have been different with our data.

According to Peter Coy, Bloomberg Businessweek‘s economics editor, the bottom line is that the Fed’s M2 is too narrow and ignores distinctions between cash and less spendable instruments.

For the full article please visit:
http://www.businessweek.com/articles/2013-03-28/the-fed-may-be-miscounting-the-money-supply

For the Chinese version please visit:
http://finance.sina.com.cn/world/20130329/190215000583.shtml

Basel Committee on Banking Supervision Liquidity Coverage Ratio Changes

There were several changes to Basel liquidity coverage rules that were announced yesterday.

The New York Times highlights two of them. The first change is that banks will have until January 1, 2019 to meet the liquidity coverage ratio (from the original date of January 1, 2015) when the rule will take full effect. The second change is a loosening of the definition of liquid assets, allowing banks to use securities backed by mortgages to meet a portion of the requirement.

Details on the package of four amendments from the Basel Committee can be found here.

Better Borrowers Than Uncle Sam

In his first article as a contributor to Forbes, Lawrence Goodman compares Uncle Sam to some well regarded corporates such as Exxon, Johnson & Johnson, Chevron, Walmart and Google. The cost to insure the debt of each corporate from default is less than the cost to insure the debt of the U.S. government – as reflected in the credit default swap (CDS) market.

See the pdf file to read the article with a copy of the comparison CDS chart or the Forbes article for the article only.

Peter Ireland Brings Milton Friedman’s Framework and William Barnett’s Theory of Monetary Aggregation Together

In a position paper prepared for the November 20 meeting of the Shadow Open Market Committee, available at

http://irelandp.com/papers/somc201211.pdf

Peter Ireland brings together Milton Friedman’s quantity-theoretic framework and William Barnett’s theory of monetary aggregation to interpret and evaluate recent Federal Reserve strategies for conducting monetary policy with interest rates at their zero lower bound.

Lawrence H. Summers on The Bretton Woods Transcripts

“Bretton Woods set the standard for all future international economic conferences. These transcripts are a precious contribution to historical study and more importantly an inspiration for those charged with shaping the future.”

Lawrence H. Summers, Former Secretary, US Treasury; Charles W. Eliot University Professor of Harvard University, Harvard Kennedy School, Mossavar-Rahmani Center for Business and Government

Stanford Professor John B. Taylor on The Bretton Woods Transcripts

“A fascinating and useful new e-book, The Bretton Woods Transcripts, has just been published by the Center for Financial Stability (CFS). While an 822 page ‘transcript’ might turn off all but the most serious monetary scholars, Kurt Schuler, who discovered the transcripts in the Treasury, and his coeditor Andrew Rosenberg have done a remarkable job of making the book user friendly. Their commentary is fascinating in its own right. Moreover, standard search engines allow one to easily scan through the document looking for topics or participants.

In reading through various passages, I was most impressed by the
foresight of the participants at the conference and their spirit of
international cooperation, as they hammered out the agreements.”

For the full blog post by John B. Taylor, former Under Secretary, US Treasury; Mary and Robert Raymond Professor of Economics, Stanford University; and George P. Shultz Senior Fellow and Chair of Working Group on Economic Policy, Hoover Institution, click here.

The Bretton Woods Transcripts Now Available for the Nook

The Bretton Woods Transcripts is now available from Barnes & Noble as an ebook. You can access the link for the Nook and the Kindle from: http://centerforfinancialstability.org/brettonwoods.php.

If you have an iPad (or other Apple electronic reading device), you can download a free Kindle app from the iStore. It will let you read files formatted for the Amazon Kindle. You should then be able to buy the book from Amazon and read it on your iPad. Similar apps may be available for other electronic reading devices.

PDF and paper versions of the book are planned for 2013.