Paul Krugman

@paulkrugman ↗

Deleted No

Hibernated No

Last Checked Dec. 11, 2021

Created

Tue Oct 26 19:20:16 +0000 2021

Likes

Retweets

Source

Twitter Web App

View Raw Data

JSON Data

View on Twitter

Likely Available

Paul Krugman @paulkrugman

OK, two complications. The Fed engaged in unconventional open market operations, buying longer-term bonds etc — QE. These may have had some effect. But if so, it wasn't through anything like the normal relationship btwn money supply and GDP 10/ — PolitiTweet.org

Posted Oct. 26, 2021

Preceded By

Paul Krugman @paulkrugman

Think of two gears that normally mesh with each other, but are currently separated. If we spin gear A faster and nothing happens to gear B, would it make sense to say that the gearing ratio has declined? No, they're just spinning independently 9/ — PolitiTweet.org

Posted Oct. 26, 2021

Followed By

Paul Krugman @paulkrugman

Also, people who talk about the money supply usually mean an aggregate like M1 or M2. Normally the Fed can target those aggregates via its control of M0. But in a liquidity trap those gears are *also* disconnected. Increase bank reserves and they just sit there 11/ — PolitiTweet.org

Posted Oct. 26, 2021