#” “monetary policy

[stripedsilktie]

Foreplay w/ Nanami leading up to hate sex is just asking him why we can't print more money

[tanadrin]

Dollarization is so funny. “Yeah our currency is too fucked up to function, we’re just gonna use theirs now.”

[racefortheironthrone]

When minting new coins and decreeing that coins showing the former monarch or monarchs were no longer legal tender, was it common to have an amnesty period, where anyone who had coins with the former monarch could trade them in for coins of equal value showing the new monarch? Was this ever used as a pretext to devalue currency, as changing from old to new currency in our own world often is?

Yes!

As I suggested in the previous post, the practice of "renovatio monetae" involved a fair bit of public outreach - such that the royal decree announcing one generally came with a grace period of a couple months to allow for people to make the trek to the royal mint, usually coordinated with seasonal markets and fairs.

And yes, medieval governments used the opportunity to adjust monetary policy in a number of ways. In addition to making money through seignorage by carefully constructing the difference between old coins turned in vs. new coins handed out in order to ensure that the crown would profit from a "hidden" tax, the renovatio monetae could be used to either "cry down" (devalue) the new currency or "cry [it] up" (revalue) - depending on which monetary policy approach the government wanted to take.

[allthebrazilianpolitics]

Brazil Central Bank Steps in Currency Markets Again Amid Selloff

Brazil’s central bank stepped into currency markets again on Tuesday as the real continues to weaken even after policymakers pledged to lift interest rates to eight-year highs.

The spot auction was the latest in a series of interventions from the bank as it tries to tame a recent spike in volatility that has weakened the real to record lows. 

The real jumped on the announcement, rising as much as 0.6% versus the dollar Tuesday morning in one of the best performances in emerging markets. Still, it remains among one of the world’s worst-performing major currencies, weakening about 20% this year.

Investors have grown increasingly skeptical of the government’s pledges to shore up public accounts and address the country’s debt trajectory. President Luiz Inacio Lula da Silva last month unveiled new income tax breaks alongside a plan to cut 70 billion reais ($11.5 billion) in spending, disappointing traders who saw it as the latest sign that the leftist leader remains more focused on boosting growth than bolstering Brazil’s fiscal outlook.

Continue reading.

[thefreethoughtprojectcom]

🎙 NEW PODCAST ~ This week we spoke to Tony Arterburn and dove deep into the monetary challenges facing America, dissecting how the ruling elite have weaponized the dollar as a tool of global control.

Apple Podcasts: https://podcasts.apple.com/us/podcast/guest-tony-arterburn-mastering-money-how-to-outsmart/id1439014279?i=1000677319630

Spotify: https://open.spotify.com/episode/29TlOQrbxJuuHtt08yAzHj

#TheFreeThoughtProjectPodcast

[workersolidarity]

*closes my eyes and taps my shoes together*

The US Dollar is still the dominant reserve currency

The US Dollar is still the dominant reserve currency

The US Dollar is still the dominant reserve currency

[barthel]

In The Super Mario Bros. Movie (2023), Mario passes by a group of Toads clearly laboring by hitting coin blocks with their heads to farm coins, raising all sorts of troubling questions about the Mushroom Kingdom’s monetary policy

[kingoftheu]

Help my post-Canon TOH fic is turning into a discussion of financial and monetary policy.

[cb-reblog]

[jdsquared]

Kiddushin 12a

[sarpedon]

im literally obsessed w money its so funny. not with earning it or having it just with like the history and development of it. a couple terms ago i had the opportunity to research any topic in all of classical antiquity for a seminar presentation and i looked at harbour taxes.

[racefortheironthrone]

Does fiat, sovereign money (greenback), and metal backed currency have any differing effects on MMT? and do you have your own opinion on which the US should have stuck with?

Yes. You can't really do MMT, or indeed a lot of modern economic policymaking, with a gold standard. (That's one of the major purposes of having a metallic standard.)

As to your second question, the U.S would have been in a much better place in the 19th century (especially for workers and farmers, i.e the vast majority of the American people) had it stayed on the fiat currency model after the Civil War and never looked back, rather than returning to the gold standard.

The Greenback Party was right.

[allthebrazilianpolitics]

Mexico, Brazil inflation reports send contrasting monetary policy messages

Inflation figures released on Wednesday painted opposite scenarios for Latin America's two largest economies, indicating that Brazil will keep tightening its monetary policy to combat rising prices while Mexico brings its interest rate down.

The annual headline inflation figures in the two countries did not differ that much from each other, but their price trends diverged and should keep monetary policy in the emerging country peers moving in different directions.

In Brazil, annual inflation accelerated in September to 4.42%, in line with market expectations but above the 4.24% reported in the previous month, closing in on the upper limit of the central bank's target range.

Policymakers in the country have vowed to bring inflation back to their 3% target, which has a tolerance margin of plus or minus 1.5 percentage points, meaning they will likely hike interest rates again at their next meeting in November.

The rate-setting committee, known as Copom, had already voted unanimously to embark on a tightening cycle last month, raising borrowing costs by 25 basis points to 10.75% amid inflationary pressures and strong economic activity.

"September's inflation figures will only add to the hawkish mood at the central bank as Copom seeks to shore up its credibility amid concerns about the politicization of monetary policy," Capital Economics economist Jason Tuvey said.

Higher electricity and food prices amid a major drought have weighed on Brazil's inflation index.

In Mexico, meanwhile, 12-month headline inflation slowed to 4.58% in September from 4.99% in the previous month, still well above the 3% target but maintaining a downward trend that has allowed the Bank of Mexico (Banxico) to lower borrowing costs.

Policymakers in Latin America's second-largest economy delivered rate cuts three times this year, including a 25-basis-point reduction last month that brought the benchmark rate down to 10.50%.

"This is a good inflation report and supports the case for further monetary policy easing," Pantheon Macroeconomics' Andres Abadia said. "Underlying inflation pressures continue to ease, and we expect a continued decline in inflation during Q4."

Continue reading.

[kevinmmiller]

The Beginning of the Return of Healthy Bond and Credit Markets in the United States 2025

I’ve been a devoted reader of James Bianco and his online postings on LinkedIn however I must disagree with his recent assessment of the current state of US Bond Markets, particularly with relation to the pricing and cumulative assets under management...

Photo by Masood Aslami on Pexels.com I’ve been a devoted reader of James Bianco and his online postings on LinkedIn however I must disagree with his recent assessment of the current state of US Bond Markets, particularly with relation to the pricing and cumulative assets under management in $TLT #ETF. A major United States Bond 20-Year Spread ETF, that is currently under the management of the…

[tamparealtortaylor]

Fed Cut Rates

- Economic Growth: Current indicators show that the economy is growing at a solid pace, despite some easing in the labor market and a slight increase in the unemployment rate, which remains low .

- Inflation Goals: The Federal Reserve aims to maintain inflation at 2%. Although inflation is making progress towards this target, it is still elevated .

- Monetary Policy Action: The Federal Reserve has decided to lower the federal funds rate by 0.25 percentage points to a target range of 4.25% to 4.50%. This decision reflects ongoing assessments of economic data .

- Support for Employment and Stability: The Committee is committed to maximizing employment and ensuring inflation returns to its target, while monitoring economic conditions closely .

- Decision-Making Process: Future adjustments to monetary policy will depend on incoming data and the economic outlook, indicating a flexible approach to potential risks .

- Committee Voting: The decision to lower rates was supported by most members of the Federal Reserve, with one member preferring to keep rates unchanged .

Sources:

[global-newz]

Sanjay Malhotra Appointed RBI Governor to Lead Inflation Battle

In a pivotal leadership transition, Sanjay Malhotra, a seasoned bureaucrat and top revenue officer, has been appointed as the new Governor of the Reserve Bank of India (RBI). Malhotra, a 1990 batch IAS officer of the Rajasthan cadre, will take charge as Shaktikanta Das completes his six-year tenure. The announcement, made by the Union Cabinet's Appointments Committee, marks a critical moment in India's ongoing fight against inflation.

From North Block to Mint Road

Having previously overseen India’s direct and indirect tax administration, Malhotra brings a wealth of experience in fiscal management. His extensive background includes leadership roles in financial services, power, mining, and IT. Like his predecessors Shaktikanta Das, D. Subbarao, Y.V. Reddy, and Bimal Jalan, Malhotra transitions from the finance ministry to helm India’s central bank, showcasing a tradition of blending fiscal expertise with monetary governance.

Inflation: A Persistent Challenge

Malhotra assumes office at a time when India is grappling with inflationary pressures. October's Consumer Price Index (CPI) inflation rate of 6.21% exceeded the RBI’s upper tolerance limit of 6%, driven by stubbornly high food prices. Tackling inflation within the RBI’s flexible 2-6% target range remains a priority for the Monetary Policy Committee (MPC).

In his final address, outgoing governor Das highlighted the importance of maintaining a vigilant anti-inflationary stance, expressing optimism that easing food price shocks would help align headline inflation with the target. However, experts predict a challenging road ahead for Malhotra, with projections of inflation normalization only by the September quarter of FY26.

New Leadership Dynamics

Malhotra’s appointment coincides with significant changes in the MPC. Recently, three new external members joined the six-member committee: Ram Singh from the Delhi School of Economics, Saugata Bhattacharya, a former Axis Bank economist, and Nagesh Kumar, head of the Institute for Studies in Industrial Development. They join internal members Rajiv Ranjan, Michael Debabrata Patra (Deputy Governor), and Malhotra himself. This reshuffle sets the stage for fresh perspectives in monetary policymaking.

The February 2025 MPC meeting, Malhotra’s first as governor, is expected to be closely watched. Economists from Capital Economics anticipate a potential 25-basis-point repo rate cut, signaling a possible shift in monetary policy under the new leadership.

External Pressures and Global Challenges

The global economic environment presents additional hurdles. Geopolitical tensions, supply chain disruptions, and surging commodity prices continue to exert inflationary pressure. Protectionist policies and trade tariffs, particularly from major economies, further complicate the outlook. As governor, Malhotra must navigate these external challenges while maintaining domestic economic stability.

A Strategic Appointment

Malhotra’s tenure is set to be pivotal, with his experience in fiscal policy and governance expected to influence his approach to monetary challenges. The blend of a new governor and recently appointed MPC members is anticipated to bring a fresh outlook to the RBI’s inflation-targeting strategy.

Economists like Madhavi Arora from Emkay Global Financial Services have noted that the macroeconomic landscape in 2025 presents distinct challenges compared to earlier years. Malhotra’s leadership will be crucial in steering India’s central bank through this complex economic terrain.

Conclusion

Sanjay Malhotra’s appointment as the RBI governor marks a new chapter in India’s fight against inflation. With his fiscal expertise and a revamped MPC, Malhotra is poised to lead the RBI through economic challenges, balancing growth, stability, and inflation control in an evolving global landscape. As India watches this transition, all eyes will be on the central bank’s policy trajectory in the coming months.