The hottest Central Banking Substack posts right now

And their main takeaways
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Top Finance Topics

Will AI Cause Massive Deflation?

cryptoeconomy • 1493 implied HN points • 02 Feb 24
💰 Finance Economics Technology Central Banking Inflation
  1. There will not be durable deflation in the future unless major changes happen to the dollar or the Federal Reserve.
  2. Technology like AI can lead to deflation by lowering prices, but central banks like the Federal Reserve counteract this by absorbing the deflation.
  3. A special type of bad deflation occurs when dollars are taken out of circulation, often due to events like financial panics, leading to economic challenges.

Zen and the Art of CBDC Analysis (Part 2)

Altered States of Monetary Consciousness • 240 implied HN points • 07 Dec 23
💰 Finance Digital Currency Monetary System Central Banking Financial Technology Global Economy
  1. Innovation trends are often blindly followed in mainstream scenes, driven by systemic forces.
  2. The CBDC debate is influenced by the inertia of the global capitalist system and the push towards automation.
  3. CBDC discussions involve various justifications like financial inclusion, cross-border payments, and adapting to the 'spirit of the times.'

What is Yi Gang trying to say in his 1st interview after retiring from PBoC?

Pekingnology • 71 implied HN points • 06 Feb 24
🌍 World Politics Economics Monetary Policy Currency Financial history Central Banking
  1. Yi Gang discussed the historical significance of Jiaozi, the first paper money, and its implications for currency policies
  2. He emphasized the importance of competition under constraints for a successful monetary system
  3. Yi Gang highlighted the necessity of establishing and enhancing modern central bank systems to maintain currency stability
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The Fed's Global Dilemma

Concoda • 794 implied HN points • 01 May 23
💰 Finance Monetary Policy Global Finance Financial Stability Central Banking
  1. The banking system has evolved significantly post the 2007/08 Great Financial Crisis, leading to changes in global monetary standards and U.S. central bank's mechanisms.
  2. Regulatory standards like LCR, NSFR, and SLR have transformed major financial institutions into stable entities, impacting their ability to engage in certain financial activities.
  3. The Federal Reserve introduced new mechanisms like Jaws of the Fed™ to control money market rates and ensure financial stability, but faces a dilemma with vulnerabilities in its global lower jaws.

The Treasury's Gambit

Concoda • 653 implied HN points • 27 May 23
💰 Finance Monetary Policy Financial Markets Central Banking
  1. Monetary leaders are implementing new tools to prevent instability in the bond market and stimulate risk assets without central bank assistance.
  2. Regulatory constraints have hindered major liquidity providers in the Treasury market, leading to the need for Treasury buyback programs to enhance liquidity.
  3. The U.S. Treasury is set to conduct buyback programs in 2024 to manage cash, boost liquidity, and potentially lower expenses and yields in the secondary Treasury market.

Venstappen Victory Lap

Malt Liquidity • 8 implied HN points • 14 Mar 24
💰 Finance Economics Investment Central Banking Inflation Financial Markets
  1. Food delivery companies like Doordash may struggle to sustain growth post-lockdowns, facing challenges with profitability and expanding their customer base.
  2. Central bank policies face challenges in balancing inflation control and market stability, leading to potential risks of speculative bubbles and volatility.
  3. Inflation can impact investment decisions, prompting individuals to seek ways to outpace the rate of return to counter its effects.

What's So Special About the Fed's Bank Term Funding Program?

Without Warning • 235 implied HN points • 12 Apr 23
💰 Finance Banking Federal Reserve Central Banking
  1. The Fed's Bank Term Funding Program offers unique benefits such as par valuation and no haircut for certain collateral.
  2. Mark-to-market accounting can lead to time-based losses for banks using market-based funding like the BTFP.
  3. Central bank interventions like the BTFP in crises may have implications for bank capital and risk management.

The Fed & the Central Banking Order of Operations

Without Warning • 196 implied HN points • 10 Mar 23
💰 Finance Central Banking Monetary Policy Inflation Communication
  1. Central banks follow a specific order of operations during financial crises, involving rate cuts, quantitative easing, and emergency liquidity facilities.
  2. Dallas Fed President raised the idea of separating asset runoff from rate adjustments, suggesting that the balance sheet and rate policy can be independent during market instability.
  3. Fed officials are discussing the possibility of actively growing the balance sheet during monetary tightening, signaling a potential shift from the traditional central banking order of operations.

The Death of QT

The Last Bear Standing • 179 implied HN points • 17 Mar 23
💰 Finance Monetary Policy Banking Sector Market Analysis Financial Stability Central Banking
  1. The Federal Reserve struggled with liquidity tightening, leading to emergency measures and a new financial crisis.
  2. Understanding the monetary plumbing system is crucial to comprehending the impact of Quantitative Tightening (QT) on the banking sector.
  3. Quantitative Tightening (QT) may not continue for long, as challenges in the banking sector could be exacerbated without further accommodations from the Federal Reserve.