New answers tagged central-banking
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The total federal debt equals intragovernmental holdings plus debt held by the public. Technically the federal debt held by the Federal Reserve System (Fed) is considered to be debt held by the public. However by law the Fed covers its operating costs and then returns to the federal government almost all of the interest payments it earns from holding the ...
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Why can't the Treasury and the Federal Reserve agree upon a controlled issuance and instant procurement of UST bonds "straight from the printing press"?
Treasury bonds are not “printed” at a “printing press,” the only “printing press” is run by the U.S. Mint, where they print Federal Reserve Notes (e.g., dollar bills). Treasury Bonds/Notes/Bills ...
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Federal Reserve Economic Data (FRED) system may have some of the data you are seeking. For example the links below may be helpful directly or indirectly to inform your further search efforts.
FRED recent release calendar:
https://fred.stlouisfed.org/releases/calendar
FRED web services release dates:
https://fred.stlouisfed.org/docs/api/fred/releases_dates....
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In a free banking model a government could define the gold Rupee by its name, Rupee, and then by the specification of quality and weight of gold content. Then in theory any unit in the economy could issue liabilities that are payable in gold Rupee. Bank notes or gold notes would pay no interest and be payable in gold upon demand at their gold window. Then ...
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You have different questions in your title and body I will try to answer them separately:
Are there western governments that don't have to borrow in their own currency?
Yes, all western governments that I know of are allowed to borrow in any currency they want. They usually borrow in their own currency because it is easier for them to repay the debt if ...
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The key to answering your question is to consider whether or not the bank that has just extended a new loan must make an interbank payment of reserves.
So let bank A extend a loan 100 to customer 1. The bank debits loan assets for an increase 100 and credits deposit liabilities due to customer 1 for an increase 100. The bank balance sheet expands.
Assume ...
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The question in the title is actually a bit broader than the question in the body, I will try to answer both questions starting with the one in the title.
Answer to Question in the Title
Can banks 'create' money on their own or do they need help from other banks?
Yes, banks actually can crate deposits on their own without help of other banks, thanks to ...
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The original question has a link to a video where the presenter states, "Exogenous means determined outside the model by something else." Then endogenous means determined inside the model.
The model variables in question are the size of the money supply and the monetary policy interest rate.
In general if the central bank can control the monetary ...
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If these T-bills mature and are repaid then you are correct money supply will decrease. In fact that might be desirable. Just because central bank wants to increase money supply in one year that does not mean they will not want to decrease it at some further period.
When the T-bill matures central bank also have option to then buy new T-bill to replace the ...
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My question is that isn't the central bank only responsible for determining the interest rates?
No, central banks do not even have directly responsibility to adjust interest rate. Depending on which country we talk about they will have responsibility to keep prices stable, high employment and bank regulation and often combination of the above. In order to ...
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The reason for the ECB to limit dividend payments is to preserve bank capital, to ensure safety and soundness of the banking system at a time of stress. Remember that when banks pay dividends , the capital base is reduced. If that happens at the same time that banks have to make provisions against bad loans , taxpayers could be at risk from bank bailouts.
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