All Episodes

April 22, 2021 21 min

In 2014 the St. Louis Federal Reserve noted that despite a MASSIVE increase in money the expected 4 to 6% inflation did not materialize. The researchers suggest it was a "liquidity trap". Yes, and no. But mostly no.


---------SEE IT-----------
Twitter: https://twitter.com/JeffSnider_AIP
Twitter: https://twitter.com/EmilKalinowski
Alhambra YouTube: https://bit.ly/2Xp3roy
Emil YouTube: https://bit.ly/310yisL
Art: https://davidparkins.com/


---------HEAR IT----------
Vurbl: https://bit.ly/3rq4dPn
Apple: https://apple.co/3czMcWN
Deezer: https://bit.ly/3ndoVPE
iHeart: https://ihr.fm/31jq7cI
TuneIn: http://tun.in/pjT2Z
Castro: https://bit.ly/30DMYza
Google: https://bit.ly/3e2Z48M
Spotify: https://spoti.fi/3arP8mY
Pandora: https://pdora.co/2GQL3Qg
Breaker: https://bit.ly/2CpHAFO
Castbox: https://bit.ly/3fJR5xQ
Podbean: https://bit.ly/2QpaDgh
Stitcher: https://bit.ly/2C1M1GB
PlayerFM: https://bit.ly/3piLtjV
Podchaser: https://bit.ly/3oFCrwN
PocketCast: https://pca.st/encarkdt
SoundCloud: https://bit.ly/3l0yFfK
ListenNotes: https://bit.ly/38xY7pb
AmazonMusic: https://amzn.to/2UpEk2P
PodcastAddict: https://bit.ly/2V39Xjr


----EPISODE #66TOPICS----
00:05 In the pre-2007 period an increase in money supply lead to an increase inflation but...
02:59 ...the post-2007 period displayed a break in the relationship (or did it?!)
04:57 Possible causes include: labor slack, banks not lending, and 'too credible' central banks
06:59 Another cause (perhaps likely?) is the Liquidity Trap.
08:16 If the Fed controls interest rates, then a liquidity trap explanation sounds legitimate
10:58 If the Fed controls interest rates, then raising rates will unwind a liquidity trap
14:39 In 2005 Greenspan testified to Congress that a fundamental monetary assumption had failed
17:57 The Fed identified market desire for safe, liquid instruments but got the "why" wrong
19:39 The St. Louis Fed paper was published in April 2014, just as the third crisis had begun


--------REFERENCES--------
St. Louis Fed's "The Liquidity Trap": https://bit.ly/2Qc858Z
Alhambra Investments Blog: https://bit.ly/2VIC2wW
RealClear Markets Essays: https://bit.ly/38tL5a7


---------WHO-----------
Jeff Snider, Head of Global Investment Research for Alhambra Investments with Emil Kalinowski. Art by David Parkins. Podcast intro/outro is "Amber Lights" by Chill Cole at Epidemic Sound.

Share
Mark as Played

Chat About Making Sense

Advertise With Us

Popular Podcasts

Crime Junkie
The Breakfast Club

The Breakfast Club

The World's Most Dangerous Morning Show, The Breakfast Club, With DJ Envy, Angela Yee And Charlamagne Tha God!

The Daily

The Daily

This is what the news should sound like. The biggest stories of our time, told by the best journalists in the world. Hosted by Michael Barbaro. Twenty minutes a day, five days a week, ready by 6 a.m.

For You

    Music, radio and podcasts, all free. Listen online or download the iHeartRadio App.

    Connect

    © 2021 iHeartMedia, Inc.