“Curto e Grosso”

Esse é Matthew Iglesias (aqui):

The Demand for Dollars

(cc photo by LateNightTaskForce)

The trouble in Europe seems to be getting worse, with debt fears spreading somewhat beyond even Spain to Belgium and Italy.

This is something people need to keep in mind when they think about QE2 and the fact that the real problem with current monetary policy is that it’s not loose enough. One thing you’re seeing as all this plays out in Europe is that the Euro is declining in value relative to the dollar. The dollar could go up for two kinds of reasons. One would be that foreigners are increasing their demand for US-made goods and services. They could be saying “I don’t want these Italian financial assets, I’m going to go buy a Boeing jet.” But obviously that’s not what’s happening here. Instead people are concerned about the increasingly rickety-looking European monetary system and want to get their hands on dollars as such.

The right response to this is for the Fed to be doing monetary stimulus—printing more money. This can take a number of forms. Buying longer-dated Treasuries seems to be what the FOMC is most comfortable with, but in a lot of ways I think it would be better to just create the money and send it to people. There are some questions about exactly how you would organize such a “helicopter drop” but I’m confident it could be worked out. And working those problems out would, among other things, have the advantage of improving the politics of monetary stimulus. Cut the banks out of the transmission mechanism and illustrate the fact that the point is to increase the amount of money that people have.

About these ads

2 thoughts on ““Curto e Grosso”

  1. Curto, e grosso MESMO. Mas va’ ser grosso assim no diabo que o carregue! Um dols poucos precos que ainda era “sort of” determinado pelo “mercado” era o dos bonds de curto prazo.

    Amigo, por que entao o governo nao compra casas? Bolha por bolha, por que favorecer o embolhecimento artificial de bonds em lugar de qualquer outro ativo? Alias, te digo uma coisa: seria muito mais facil retirar o “estimulo” caso ele comprasse outra coisa qualquer. Porque essa retirada vai derrubar o preco de FTB pra liquidar com muita instituicao boa que ainda tem pleae. Ou, nao, como diria Caetano. Porque ae o governo viria com outra invencao imbecil qualquer pra manter esse bando de zumbis insolventes vivos.

    Quando e’ que o capitalismo de verdade vai voltar? Quando alguem vai achar que “enough is enough” e ta’ na hora de acabar com essa palhacada corrupta?

    Um grande abraco

    Kleber S.

    • Kleber
      Percebo vc “irado”. Mas a imagem é aquela do sujeito que pega a moça pra dançar gafieira e começa com o “pé trocado”. Como a “dança” é acelerada vai “demorar” para “concertar” e muita gente vai “tomar pisão e cotovelada” no processo. A “solução” é fácil: “Muda a música”! (i.e. acerta a política monetária)
      Abraço

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s