Category: Finance & Economy

The tapering that was not and the concept of stock and flow

The Fed surprised the world this week by calling off its widely anticipated ‘tapering’ plan which would have called for a gradual reduction of the amount of bond purchases from its current $85 billion per month level. The decision highlights the box the Fed is in and the increasing dominance of flow over the stock of the bond purchase program, a concept missed by the vast majority of economists and so called subject matter experts.

September 22, 2013
In-depth topic: Monetary reset