What is FTPL (Fiscal Theory of Price Level)?

The Fiscal Theory of the Price Level says that money has value because the government accepts it for taxes, and inflation is fundamentally a fiscal phenomenon

The sovereign-bank “doom loop”

Since the Euro crisis, investors and policymakers are well aware of the so-called "doom loop" between the banking system and the sovereign. That is, a crisis originating in the banking system (sovereign) will weaken the sovereign (banking system), which in turn will worsen the banking (sovereign) crisis itself.In a recent ECB discussion Paper "Managing the sovereign-bank nexus", the 7 economists - Giovanni Dell’Ariccia, Caio Ferreira, Nigel Jenkinson, Luc Laeven, Alberto Martin, Camelia Minoiu, and Alexander Popov - coauthored the paper suggested that the banks and sovereigns are linked by three interacting channels:

“The Rate of Return on Everything, 1870-2015”

How Alan Taylor, one of the authors of "The Rate of Return on Everything, 1870-2015" explains the liquidity premium problem when we compare the rate of return on Housing and Equity
Atif Mian WITGT Cover

The Major Shifts in Macroeconomics Since the Great Recession | Q&A with Atif Mian...

The honorable guest for this installment is Atif Mian, Theodore A. Wells '29 Professor of Economics and Public Affairs at Princeton University, and Director of the Julis-Rabinowitz Center for Public Policy and Finance at the Woodrow Wilson School. Professor Mian will first discuss if there are any "revolutionary" changes happened in macroeconomic academia since the Great Recession.

Why hadn’t Federal Reserve rescued Lehman Brothers in 2008?

This week, the trio who was directly responsible for the decision to let Lehman fail – Bernanke, Tim Geithner (then New York Fed President), and Hank Paulson (then Treasury Secretary) – joined together at a panel held by Brookings Institution and spoke about the lessons they had learned from the crisis.

How to use the Fed’s FIMA Repo — the case of Hong Kong

Hong Kong Monetary Authority, the de facto central bank of Hong Kong, announced on April 22 that it will utilize the Fed's FIMA Repo facility to borrow USD 10 billion of cash.

Helicopter Money is here in Hong Kong? Well…

“The money helicopter has arrived,” Claire Jones writes in her FT Alphaville post, citing Hong Kong Finance Secretary’s announcement of a handout of HKD 10,000 to each permanent resident in the city.As a Hong...

Hysteresis – An Underrated Macroeconomics Question

Hysteresis is referred to the hypothesis that recessions may have permanent effects on the level of output relative to trend.

Hong Kong Linked Exchange Rate & HKD-USD interest rate differential

HKD tends to be on the strong side (closer to HKD 7.75 per USD) when the interest rate differential is positive (HIBOR > LIBOR).

How the Game of Bank Bargains Created the Financial Crisis? | Q&A with Calomiris...

Welcome to the latest installment of our interview series “Where is the General Theory of the 21st Century?”“Where is the General Theory of the 21st Century?” is an interview series which we ask top...