Paul Krugman

@paulkrugman ↗

Deleted No

Hibernated No

Last Checked Dec. 11, 2021

Created

Tue Oct 26 19:24:15 +0000 2021

Likes

125

Retweets

Source

Twitter Web App

View Raw Data

JSON Data

View on Twitter

Likely Available

Paul Krugman @paulkrugman

So M1 and M2 are no longer policy variables, even potentially; they're determined mainly by demand for deposits, and the Fed can't change that through its operations. As I said, money is endogenous 12/ — PolitiTweet.org

Posted Oct. 26, 2021

Preceded 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

Followed By

Paul Krugman @paulkrugman

Again, in an arithmetic sense the money multiplier has declined, but that's not a helpful way to describe what's going on, which is instead that the gears have simply been disengaged 13/ — PolitiTweet.org

Posted Oct. 26, 2021