Explainers

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

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

Reserve Management Purchases (RMP) is a form of open market operations under which the Federal Reserve injects reserves into the banking system through "permanent" asset purchases with an aim to ensure the level of reserves remain "ample".

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.

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

Or, to frame the question in a more technical way: is tipflation even counted as part of Consumer Price Index (CPI) inflation?

An important question is how do we get the series IDs for the data you need. The short answer is through BLS's Data Finder

In recent months, the Global Economic Policy Uncertainty index has risen to a level much higher than periods around the 911 Terrorist Attack or the 2008 Financial Crisis, hence the conclusion that the economic policy is unprecedently uncertain now. But here is why you might not have to worry.

"The [Standing Repo Facility (SRF)] rate is set at the top of the FOMC’s target range for the federal funds rate. This combination of an ample supply of reserves and an SRF rate at the top of the target range reduces the day-to-day reliance on the facility except during periods of significant upward pressure on rates resulting from strong liquidity demand or market stress," said John Williams

The Federal Reserve announced after the December meeting that it removed the aggregate limit on the Standing Repo Facility (SRF). Repo rates spiked toward the end of the week, with SOFR and the Tri-party General Collateral rate (TGCR) reaching 4.12% and 4.08% on Friday, respectively, breaching the Federal Reserve's overnight interest rate target range.

President Trump's plan to install a "Shadow Chair" months before Jerome Powell's term ends will definitely reshape US monetary policy — but it could face a surprising challenge from Powell himself.

Quantitative tightening (QT)—a process central banks use to reverse years of liquidity creation from quantitative easing (QE)—is concluding in many advanced economies. The central banks are growing confident that reserve levels in their financial systems are nearing their endpoints. Where are the endpoints of QT and what come next?

An explainer on how Hong Kong Linked Exchange Rate System works, what Aggregate Balance is, and how interest rate arbitrage help maintains Linked Exchange Rate System.

A relatively unexpected discussion among Federal Reserve officials during November FOMC meeting was that "some" committee members suggested a future consideration of lowering the ON RRP facility rate by 5 basis points. Why are they talking about that?

The payment on reserve process proposed by Robert Hall and Ricardo Reis is a way of remunerating reserves which would give the central bank...

A standard perception of PPI is that it is a measure of "wholesale inflation", but the BLS told EconReporter that this interpretation of PPI is not at all correct.

Powell says he will be Chair Pro Tem as long as Warsh is not confirmed. Is it 100% going to happen?

This page compiles the expected liquidity flows between Hong Kong Monetary Authority's (HKMA) Exchange Fund Bills and Notes (EFBNs) and the Aggregate Balance. Estimates of these liquidity flows can provide a lens into the HKMA's liquidity management practices