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21 sats \ 2 replies \ @Undisciplined 10h \ on: Testing the Money Printing Hypothesis econ
This sounds interesting, but I haven't had time to read through it, yet.
Exploring three hypotheses about money printing, QE, and the flow of funds in the modern financial system.
  1. Reserves created in QE leak out into the economy, specifically via Vault Cash
  2. Changes in the level of reserves directly impact price level
  3. Money to buy Treasury debt comes from the Federal Reserve
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32 sats \ 1 reply \ @RideandSmile OP 9h
wait for your feedback after your reading :)
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21 sats \ 0 replies \ @Undisciplined 9h
I liked the setup:
There are three things to look out for:
  1. The logic is flawed (I don't believe is the case generally true for praxeology).
  2. A premise is incorrect—often due to assumptions like ceteris paribus. If that premise always prevents predictions from materializing, one must question those assumptions.
  3. A variable is misidentified—such as using M2 as a proxy for money supply, which is counting the wrong thing.
Hopefully, I'll have time to read the rest soon.
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